You are correct!
Search for the words, before you proceed;
There is no warning, for you to heed.
Search for the word at the beginning (copy protection)
See me for a moment or briefly;
It's up to you, how much you see.
This is remarking how you can press ENTER to pass the screen with the logo.
You will see me elsewhere;
These are the clues I thought I'd share.
Indicating the Sierra logo is seen elsewhere as in other games.
First you will see me before the sunlight;
But you will also see me before night;
This was to indicate it's King's Quest 4. (Day/Night cycle)
But also - before both cycles - I was trying to say "it's before you see either - so it's before the game starts"
But no matter how hard you've tried
You will never see me once you're inside.
As noted, once inside the game, you won't see the beginning Sierra logo again.
When you first enter, darkness awaits;
Enter the word to seal your fate.
Prove to me you're worthy,
And it's me, you will see.
A cryptic clue that the copy right screen is all black (just a white box to enter the word)
Prove to me you're worthy is to indicate you have the word that the copy protection needs.
I am easy to see when you play;
Because I am colored blue;
Against the nuetraul colors of grey;
It's something each of you knew.
This was the one I knew would give it away; the colors.
And the "something each of you knew" as in you've all seen the Sierra logo before (in KQ4 or elsewhere) at the start of a game.
*beats head against the wall*
