Can a listbox have colored items?

Is it possible to create colored lines/items in a listbox?

yes.

Since you've been looking at this for 20 minutes and haven't replied yet, I'll go ahead and post the link to Google I was going to put in earlier. You need to look at the OwnerDrawn option and override the paint method. One of these search results should give you a pretty good idea:
http://www.google.com/search?q=%22vb%2Enet%22+listbox+owner+drawn+color

(I guess I could have assumed by your initial qestion that you wanted to know how to do it, and not if it's possible. Just be careful with how you ask your question.)