Is it possible to change the available colors in the tool?
I need to display only a certain set of colors for the user to choose.
You can only set the custom colors displayed in the popup color picker, but there are always a certain set of hard coded colors displayed. You can submit a feature request to be able to change those colors here: http://devcenter.infragistics.com/Protected/RequestFeature.aspx.
Unfortunately, I think the only way to work around this would be to create your own color picker control and use it in a PopupControlContainerTool.