Strong colorability
Let be a positive integer. We say that a graph is strongly -colorable if for every partition of the vertices to sets of size at most there is a proper -coloring of in which the vertices in each set of the partition have distinct colors.
Haxell proved that if is the maximal degree of a graph , then is strongly -colorable. She later proved that the strong chromatic number is at most for sufficiently large depending on . Aharoni, Berger, and Ziv proved the fractional relaxation.
Problem Solved!
See "On the Strong Chromatic Number of Graphs" by Maria Axenovich and Ryan Martin (2006)
only partly solved
The paper cited (available at http://orion.math.iastate.edu/axenovic/Papers/Martin_Strong.pdf) only resolves the above conjecture for graphs G which have maximum degree at least |V(G)|/6.
That theorem has been proved
That theorem has been proved in an even older paper by another set of authors.
After a quick search I found that paper at http://abel.math.umu.se/~klasm/Uppsatser/factor.pdf
still only a partial solution
Once again, the paper cited offers only a partial solution. Quoting from the paper, "From Theorem 1.1, we conclude that the strong chromatic number can be bounded by if . This result should not be compared with the more complete and difficult result of Alon." Here, the difficult result of Alon is the theorem that there exists a fixed constant so that every graph of maximum degree is strongly -colorable.. precisely the result which is sharpened by this conjecture.
Recent progress
Haxell proved that is sufficient for sufficiently large depending on . (JGT, 2008)
Aharoni, Berger, and Ziv proved the fractional relaxation, i.e. that with partition cliques of size we have a fractional colouring. (Combinatorica, 2007)