I"m kind of confused about what it is you're trying to do here. It looks like you're just trying to attach an onclick event to some links, however it's actually attached to the UL tag. Since you're checking to see if the event source target is a link, it's going to return false, which is what causes it not to go anywhere, and it's not going to change any links' colors because you're not actually getting the links as a source target.
Please describe exactly what you want to happen when someone clicks a link and we can come up with a better, simpler way to go about this. If I'm looking at this right, you simply want to change the clicked link to 1 color and the other links to another, is that right?