CitrusmanDid something about the update break damage numbers? The updated hud uses the red ones no matter which version of huddamageaccount is used, and going back to the version of the hud from before the update uses the same small red numbers.
Just checked — works fine for me:
http://i.imgur.com/4CJUH54.jpg
Try to restart Steam, then launch TF2 without any HUDs, close when it done and launch it again with custom HUD installed.