A long time ago I talked about the Colorful Tabs extension. One thing I noticed when I went to Bon Echo (Firefox 2) it was one of those extensions that did not work. Further, after forcing it to work with the Nightly Tester Tools, I discovered while it did work, it broke some functionality of Firefox. Once installed, you get colorful tabs, but no close buttons.
I reviewed the extension author’s site but it has not been updated since June and have a feeling it won’t be anytime soon. However, on the extension page though, there was note from someone who said if you changed the Close Tab Button setting in about:config to ‘3’ this would work. Looking back at my post, ‘3’ would put the Close Tab button at the end of tab strip as it was in Firefox 1.5. I’ve tested and while this does work, I prefer to have mine set to ‘0’ which places the close button on the active tab. Sadly, though that setting won’t work with Colorful Tabs and Firefox 2.
Now also keep in mind you can close a tab by right-clicking on the said tab and selecting from the context menu ‘Close Tab’. I have also been told you can close a tab by middle-clicking on the said tab.
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Try the “Aging Tabs” extension, it’s Firefox2 compatible and has similar features (a bit better imo).
You can also wheel-click to close tabs if you don’t have a middle button.