can you assign a TEXT to a panel, if so how? In the manual it says briefly that panels can contain texts but doesn't say how.

digits support strings now.

digits(10, 10, "your string: %s", font1, 0, your_string);

but a digits string is somewhat limited as you cannot set certain flags like you can a text, also texts can have different colors or even animated color.

Digits can use colors too.
Just Change the Panel.red/green/blue and the Text is colored

yes, but that defeats the purpose of using a panel with text...I would use a panel with a bmap + strings/text to show certain variables on said panel. I would have a red panel with red text....don't work.