No problem.
And the order I believe is white -> Magical (bright green) -> Heroic (dark green) -> Legendary (yellow) -> Elder (purple) -> Epic (red) -> Unique (dark red)
The named items with gold name mostly seem to be better than colored random items of the same level, though that is not always the case (some named items are more of a novelty or even serve as quest items). Also, a lot of these will be part of a set which will give you an extra bonus per piece the more pieces you have equipped.
The rarer and higher level an item is the better the base damage and inherent stats will be. It will also have more charm and enchantment slots. Charms cannot be changed once you put them in by the way, but enchantments you can change as much as you like as long as you have the mats for it.
