UFO sighting? What could this be?

Okay, I try and maintain a healthy level of skepticism in life, I don't immediately bug out when I see something I cant explain, but this was pretty weird. Looking for any possible explanations please.

Me and a friend are sitting in his car parked up at night. We look up and see a stationary red light in the sky. We think nothing of it. A while later we look up and see it has changed color, its yellow. Then blue, then green, then red again etc. We tried to rationalize what it could be:

1. A tower, a warning light on a tower. Problem with that is that there's not tower there, I think we would notice, we live in the area.

2. A satellite. Don't satellites move? Do they even change color like that?

3. A plane. Planes move. The wing lights also don't change color to every conceivable color there is.

4. A star. Space can distort color etc right? Maybe light distorted through space and playing tricks on our eyes.

Number 4 was about the only rational explanation i could come up with. We watched it for ages and it never moved or flew around or anything cool like that, so I'm hesitant to decree "crazy alien spacecraft" too quickly.

Anyone?

*bump*

None of you UFO experts can tell me? Come on...no one knows what this could possibly be?

It's going to be nearly impossible for anyone else to tell you what you saw better then what you think it could be because you don't have any pictures of it.

Wish I could be more helpful but you guess will be as good as anyone's at this point.

Yeah I know, just thought I'd try.

I just thought there might be some expert type on here that could just say "satellites can be stationary and change colours like that" or some such explanation, before I assume its an alien craft.

I'm going to say star. I saw something quite similar to this a few months ago, and since i had my handy telescope nearby i took a closer look, it was a star, really bright, and changing colours, red, green, yellow, blue. My fiance thinks that it may be one of the more active stars.... That's what it sounds like to me.

Cherry