I found some interesting links
This one seems to have the answers
http://www.home.earthlink.net/~herald97/guyselvester/id9.html
Q: Does the Pope wear red shoes?
A: Yes. If you see the answer (below) about why the Pope wears white you'll see that until the reign of Pius V the Papal color (including the shoes) was red. This remains to this day. Until the reign of Pope Paul VI (1963-1978) the Pope would change from red to green shoes during the 50-day Easter season.
Popes used to wear elaborate, slipper-like shoes embroidered with crosses. Pope Paul ended that and began to wear simple, bright red loafers. Pope John Paul I wore red shoes and John Paul II (1978-2005) often switched to simple brown shoes. However, he most often wore cordovan colored loafers except on big occasions. On those days he continued to wear red shoes.
Some people assert that John Paul II eliminated red shoes. WRONG! Some assert that Vatican II did away with the Pope's red shoes. WRONG! Benedict XVI (2005- ) wears red shoes because it is an old custom that goes back to when Popes wore red.
Q: Why was Pope John Paul II laid to rest in red vestments? Why were the cardinals who concelebrated his funeral vested in red?
A: Please see the answer below concerning what color the Pope wears. Nevertheless, these questions came up a lot during the days around John Paul II's funeral. For a long time the Popes have been laid to rest vested in red vestments. This is because red is the color associated with the apostles. It is also associated with Peter's martyrdom. These are also the reasons the Popes originally wore red clothes, not white. So, it is an old custom to lay out the Pope's body vested in red vestments.
Wearing red vestments at a papal funeral is a relatively new innovation. The usual color for funeral masses in Europe and specifically in Italy is VIOLET. The colors that may be used for funerals in the U.S. are BLACK, VIOLET and WHITE, however, white is seen most often these days at funerals in the U.S. In 1978 Pope Paul had left instructions for his funeral in which he requested that the cardinals NOT wear violet or any color of mourning at his funeral. So, since his body was vested in red, the cardinals wore red for his funeral. Isn't it interesting that it never occured to them to wear white? Contrary to popular belief Vatican II did NOT require white for funeral masses. In most of the world white is NOT worn for funerals and white is NOT the only color permitted for funerals in the U.S. even according to the most recent instructions written in the 1980's.
So, red is a color for papal funerals. It isn't used at any other times or by anyone else for funerals.
http://forums.catholic.com/showthread.php?t=48392 This one has a picture with Papa Benedict in his red shoes.
http://secretlifeofshoes.blogspot.com/2005/04/popes-red-burial-shoes.html This is an interesting comment on the Red Shoes, the guy was an athiest for 40 yrs and is now Roman Catholic.
http://www.splendoroftruth.com/curtjester/archives/005693.php
