Confusion

Last night I came home to find a DVD of an open mic performance I was a part of a few weeks ago. I pop it into the computer and start to watch it. At one point while I'm singing, the camera zooms in on my face and I'm all, "Sweet," and then I notice my dog is staring up at the computer and cocking his ears. So I tilted the screen down and said, "Look, that's me." For a dog with arthritis, dwarf legs and ten years on him, I have never seen him jump up so fast. Balancing the top paws of his ridiculously disproportioned body in my lap, Stumpy McCircusfreak started desperately sniffing at the screen. Then he looked at me, looked back at the screen, sniffed again, then jumped down and just stood there looking really confused. He then forgot where he was because he has the attention span of a goldfish and lay down on the ground to lick himself.

Can dogs really see images on the computer like that? I thought they were colorblind and saw upside down.