Chairman Nigel Doughty signals his backing for manager Gary Megson in the clearest possible fashion in January, funding transfer deals for Julian Bennett, Sammy Clingan and Grant Holt as well as the permanent signing of Nathan Tyson.
Marlon King makes his loan move to Watford permanent with the Hornets in the thick of the Championship promotion race. Alan Rogers, Eugene Dadi and Gareth Taylor all leave on loan.
On the pitch the year starts badly as Colchester score twice in stoppage time to run out 3-1 winners at Layer Road, after Nathan Tyson had equalised in the 90th minute.
Things seem to be improving slightly when Holt scores on his debut in a 3-0 home win over Oldham before the Reds draw away at Brentford.
However, the pressure grows on Megson as the month ends with a draw at Rotherham, a home defeat by Barnsley and a 1-0 reverse against rock-bottom Milton Keynes Dons.