Is there any way (aside from a words only description) to change the description of the objects in the room.
Example being, "There is Jimmy here"
Wanted: "Jimmy is here."
Any way to do that? Because I like having the objects in Red and the room in Black, but in words only mode i cant do that.

Well here's the most simple way: Just add in a |cr for red.

| means code, or initiate coding, meaning the following characters will be code references... I'm not quite sure how to put it any other way.

c is for color.

r is for red, you can also do L for blue and Y for yellow. |cb returns it to normal, B being black as default. Actually if you really want, it'd be most simple to use QDK And instead of Words only, just do script, and make the script code "print" a message. When the little box pops up for what you want it to print on the right, click the big T in the top toolbar next to the # % and $ signs. Those by the way help you with variables.

So if you wanted to make it say what your asking just type

msg <|crJimmy|cb is here|nYou are in |clramtha's room>

the |n being for new line, but if your using QDK you can just enter that it under print.

There is a way to change the way rooms/etc are described... Which I think you are after.

The part where you enter a room, and get "you are in water room, the hobbit is here, elves are here, exits are North East South West." type of thing.

I unfortunately don't know how to do that. It's not one of the interesting parts that I bothered to learn.

The rough idea is to change the "description" bit in the global game block.
IE, in QDK look in the world icon (global) and in there should be a description bit somewhere. Putting script in here can change the way each of your rooms are (or are not) described. Totally up to you!

I'll put a little demo together and upload it later.
http://www.compwhizz.freeserve.co.uk/asldemos/description.asl

I don't know if this is helpful to you at all, but if you really want to change a certain word in a msg tag to a different colour other than red, blue, green, and yellow, you can use the foreground <&H000000> commands before a msg line. You incorporate this with the [ |xn ] tag in a line. This enables the next msg line you type to be connected to the previous one, rather than print out below it. for instance, here could be a take command for a pickle:

take {
          msg <You pick up the |xn>
          foreground <&HFEDA00> 
          msg <pickle |xn>
          foreground <white>
          msg <and look at it with a smile.>
          give <pickle>
}

N.B. - for some reason, quest has reversed the hex system for the colours. I'm not sure if this is intentional, but all you need to know is if you're trying for a light teal blue, which should be about [ #00ADEF ], quest actually calculates blue as [ #FEDA00 ] don't ask me why.

anyway, using colours in this way really broadens the playing field and helps your player know exactly what's going on with just a quick look. Here's an example of colours implemented in my program.