Check this new modifier (it’s in 2.74) :
https://www.blender.org/manual/modifiers/modify/normal_edit.html
As an example, i download a 3D bush from a quick google
By default, the normals does not help much of course :

Now i add a Plane (can be any kind of object you want) , then i select the foliage object, set Autosmooth to ON (as the modifier will need it)

I add a Normal Edit modifier to the foliage object , i set the mode to “Directional” and the target to the Plane object i added, you can play with the Mix Mode settings too, for this example i’ll use Add

I now move the plane around and notice the normals change on my foliage , pointing to the plane i am moving :

When you’re satisfied, you can apply the modifier and get rid of the plane.
For the vertex color, i have no idea, that page does not really explain what the guy has been doing with what he shows in screenshot, did he paint manually something, did he use some dirty vertex-like function, can’t say
edit : obviously i was too slow while taking screenshots and writing that, already been answered :