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Here's the problem: I use the marquee tool to highlight a color mage. I then edit>copy. I open a new file and then edit>paste. The image is pasted into the new file but it is black and white. I don't think I've made any changes with the color
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Have you created a new black and white image? With the New Document dialog box open, note what the Colour Mode is set too. You may have Grayscale instead of RGB Color.
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Yea, sounds like you had created a grayscale image previously, so your settings are sticky. Make sure, when you create the new document, it's in rgb mode.