Place the popcorn in a greased 17x12x2-inch baking dish. Keep popcorn warm in a 300 degree oven while making syrup mixture. In a heavy 2-quart saucepan, combine butter, sugar, gelatin, water,food coloring and corn syrup. Cook mixture over medium heat until it boils, stirring constantly. Clip a candy thermometer to the side of the pan. Continue cooking over medium heat, stirring constantly, until the thermometer reaches 255 degrees (hard-ball stage).
Pour syrup mixture over popcorn. Bake in a 300 degree oven for 5 minutes.
Stir once and bake 5 minutes longer. Place popcorn mixture onto a large piece of foil. Cool completely. Break popcorn mixture into clusters. Store.
in an airtight container. Serves 14-16 children. (Can used any flavor of gelatin).