Being very unlike me I've made a decision and am going to use the Foundry Deep Blue and Sky Blue paint sets for cloaks and cloth respectively.
I've been test painting a Phoenix Guard model (will try and remember to post a pic) with the sort of thing I'm thinking of and like it (plus I found it a lot, lot easier to do than white cloth) so I decided that's the way I'm going to go.
I decided to use the Foundry sets purely so that I don't have to worry about mixing the shades all the time and ending up with not terribly good matches between models in the same unit. Just hoping the paints arrive before the weekend so I can get cracking on finishing off this first set of Dragon Princes and then do a load more infantry to round out what I need there for my 1999 point list (although I could do with actually painting up a unit of Phoenix Guard in case I decide to switch back to them as my main block instead of White Lions).
To that end I started sorting out the next load of models last night - which meant having to rebase about 6 archers and 5 spearmen so they're on the slot right bases (as I got them all from ebay they've been put together by the previous owners and some of the archers weren't on diagonal bases and some of the spears weren't on the regular bases). Just need to stick the phoenix bit to the White Lion standard bearer's pole and base him and then dig out a set of command models for the spears/sea guard (whichever I decide to run them as), get that painted up and I think that'll be my infantry done for now.
Also have a mounted wizard and a foot wizard that I need to paint up, plus I need to chase my local store about ordering me some High Elf steeds and get them sorted. Once that's done I can finally get round to assembling my Noble/Prince set that the missus bought me for my birthday as well as the chariot set.