Hi Donna.
Rather than creating an additional control on your panel, you could try this:
// Get the control's initial frame color
GetCtrlAttribute (panelHandle, myControlId, ATTR_FRAME_COLOR, &normalColor);
...
...
// Set the control's frame color based on whatever condition
SetCtrlAttribute (panelHandle, myControlId, ATTR_FRAME_COLOR, needRedOutline? VAL_RED: normalColor);
Colin.