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Talk to Generals Wartface and Bentnoze in the Goblin Village.
You can buy all paint colors in Lletya Seamstress is a store run by Oronwen at Isafdar.
Go to the Goblin Village north of Falador and speak with one of the generals. Say that you will help solve their dispute about which colour armour to choose.
1: Orange Armour
They'll ask you to show them an orange coloured armour. You will need some orange dye, which you can buy from the Grand Exchange, or make by mixing red and yellow dyes. You can get Aggie in Draynor Village to make you red, yellow and blue dyes.
Once you have your orange dye, use it with a piece of Goblin armour and show it to either of the Generals. They won't like the colour and ask you to show them blue coloured armour.
2: Blue Armour
To make blue dye, you will need 2 woad leaves to give to Aggie. Woad leaves are available from Wyson the gardener, who can be found in the garden north of the Eastern Falador Bank, shown in the map below. If you offer him 20 gp for one, he will give you two for your generosity, otherwise you will have to pay 15gp a piece. Woad leaves can also be grown by members using the Farming skill.
Take the leaves to Aggie to get blue dye made. Once you have the dye, use it with the armour and show it to one of the Generals. They won't like this second colour either.
3: Brown Armour
They now ask for brown Armour. The Brown armour they're talking about can be obtained by searching the crates in the goblin village. So just get a brown Goblin Mail and talk with them again to complete the quest.
Credit: TipIt 2011