ColorDMD and the Deadworld mod are 100 percent compatible. You may have a failing 12V power supply.
Check the voltage at TP1 with/without the ColorDMD connected. Should only see around 0.5V change and remain over 12V.
If you're seeing a large voltage drop or voltage falling below 12V, your unregulated 12V supply on the power driver board is not operating properly and the bridge and/or cap may need to be replaced.