http://forum.unity3d.com/threads/192711-VPaint-Advanced-Vertex-Painting-Released [ame=" http://www.youtube.com/watch?v=8lXcHsP-6Ws"]VPaint: Advanced Vertex Painting - YouTube[/ame] Hopfully this should solve some issues people have with vertex painting in Unity. We're still adding features but it's pretty fast already and…
Yes it should work on instances. long answer: it stores vertex colors independent of the meshes, duplicating an object will require you to add the new object to the paint group, but otherwise it will retain the original instances