  We present a study of 81 I selected, spectroscopically-confirmed members of
the X-ray cluster MS1054-03 at z=0.83. Redshifts and spectral types were
determined from Keck spectroscopy. Morphologies and accurate colors were
determined from a large mosaic of HST WFPC2 images in F606W and F814W.
Early-type galaxies constitute only 44% of this galaxy population. Thirty-nine
percent are spiral galaxies, and 17% are mergers. The early-type galaxies
follow a tight and well-defined color-magnitude relation, with the exception of
a few outliers. The observed scatter is 0.029 +- 0.005 magnitudes in restframe
U-B. Most of the mergers lie close to the CM relation defined by the early-type
galaxies. They are bluer by only 0.07 +- 0.02 magnitudes, and the scatter in
their colors is 0.07 +- 0.04 magnitudes. Spiral galaxies in MS1054-03 exhibit a
large range in their colors. The bluest spiral galaxies are 0.7 magnitudes
bluer than the early-type galaxies, but the majority is within +- 0.2
magnitudes of the early-type galaxy sequence. The red colors of the mergers and
the majority of the spiral galaxies are reflected in the fairly low
Butcher-Oemler blue fraction of MS1054-03: f_B=0.22 +- 0.05. The slope and
scatter of the CM relation of early-type galaxies are roughly constant with
redshift, confirming previous studies that were based on ground-based color
measurements and very limited membership information. However, the scatter in
the combined sample of early-type galaxies and mergers is twice as high as the
scatter of the early-type galaxies alone. This is a direct demonstration of the
``progenitor bias'': high redshift early-type galaxies seem to form a
homogeneous, old population because the progenitors of the youngest present-day
early-type galaxies are not included in the sample.
