I say don't do it if you're attempting to grow your hair. I stopped coloring my hair in 12/06 and I've been growing it since 4/07. I initially colored my hair ~ 2002/03. My first color was all over, but over the years, I wanted less color so I just had heavy highlights in the front. My hair was always "healthy" b/c it's really thick and I could keep the ends trimmed. when i started growing out my hair, I noticed that the color hair is prone to break off easier.
When I reach my final goal, I'll probably highlight again (b/c I love me some color!) but not until it's grown.
Here are some pics of my hair. from left to right--full color, highlights, hair months ago (you can see some of the color is still in the top.
ETA: my hair was a blonde color ( i used developer/bleach) and I put a reddish rinse over it. the rinse is more prevalent in the 2nd and less in the 1st.
I plan on deleting these pics soon, i just wanted to give you a visual.