Friday, May 15, 2009
According to dictionary.com (and as long as you're talking about the color), whether you spell it with an "a" or an "e" makes no difference; they're interchangeable.
That said, most people spell it "gray," while "grey" is most commonly seen as a surname, especially when the first name is some variant of "ane" -- Anne Grey, Jane Grey, Zane Grey, etc.
HOWEVER, at least according to Wikipedia, there is a distinction: "Grey" is the proper spelling in British and Canadian English, while "gray" is the proper spelling in American English.
And for no particular reason, the entry usefully points out:
Non-cognate greyhound is never grayhound.