Using a command block, when a FallingSand block uses a TileID:2 to make it a grass block, as it falls, the top side is grey in color until it lands. I tested with /summon FallingSand ~ ~2 ~ {Time:1,TileID:2} but the coordinates can be anywhere where the sand can fall.
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Still a concern in 1.7.4/5 and 14w06b. In 07a, falling animation is broken so I can't confirm for other versions...
that is both with grass and leaves because the falling sand doesn't look in witch biome it is, the textures are gray in the files and collored in game. if it is a solid block it looks at the biome and then it's getting colored.
Probably Working As Intended like MC-30663
onnowhere
Confirmed.