Emacs and colors in compilation buffer

[Hemant Kumar <hemant@codemancers.com>]

Hello folks,

I am using https://github.com/Wilfred/ag.el for searching in directory and the with colors enabled in ag it looks like, 
http://cl.ly/image/2K35030n1C0T (Please note same problem exists with various ack modes as well)

As you can see it doesn't completely break and ansi color sequences are properly converted (at least some of it). In fact when search output is small enough, it looks perfect. But lets say when I grepping something like Rails code and then the result looks like:

http://cl.ly/image/2x012Y1L0e2T

As if the the color which was supposed to highlight the match has taken the background!

I already have following bit in my configuration file:

(require 'ansi-color)
(add-hook 'shell-mode-hook 'ansi-color-for-comint-mode-on)
(defun colorize-compilation-buffer ()
  (interactive)
  (toggle-read-only)
  (ansi-color-apply-on-region (point-min) (point-max))
  (toggle-read-only))

(add-hook 'compilation-filter-hook 'colorize-compilation-buffer)


Which  should fix this problem but it doesn't completely.  

Any help is much appreicated.



Cheers
Hemant
http://twitter.com/gnufied
http://www.codemancers.com