color and halfcolor *aren't* initialized--they're only declared. You'll need to do something like this to get rid of the warning:
int count = 256, color[256] = {0}, halfcolor[256] = {0};
Or,
#define COUNT 256
fn()
{
int color[COUNT] = {0}, halfcolor[COUNT] = {0};
}
Are FOR, DO, and NEXT SASC-specific macros? Using a standard C for-loop might disable the warning as well, but initializing the variables as part of the declaration should allow the compiler to do the optimization for you.
Trev