In thinking about this again (still!) last night, I realized that my logic yesterday was partly wrong. There is one solution which does not violate the conditions of Randi’s version of the puzzle. However, it is based on this not-unreasonable assumption: that Curly, Larry and Moe have to take turns, in that order, solving the puzzle. That is, Larry cannot speak before Curly; and Moe cannot speak before the other two.
Even though it is not specifically stated whether (a) each must wait his turn to solve the puzzle or (b) each must speak up as soon as he knows his own hat color, we have to assume it is (a); because Moe’s statement at the end clearly violates (b). But it is necessary to know which of these two “rules” applies, because each affects the logical thinking of the three men (and us, the observers) in a different way, as we have been discussing. Thus, one problem in Randi’s version is that this distinction is implied but not clearly made.
So, on to the solution. To keep clear on the order, I am going to refer to Curly, Larry and Moe as persons #1, #2 and #3, respectively – and unless otherwise stated, the hat colors are not discussed in any particular order:
Person #1 gives up, meaning he sees W-W or W-R, definitely not R-R. [Note: this should not have taken 15 minutes, and so is rather misleading; this is the second problem with Randi’s version.]
Person #2 knows that #1 sees either W-W or W-R because #1 couldn’t solve it. Likewise, if #2 sees R-R, then #2 could solve it instantly; so we know that #2 sees either W-W or W-R. Now, if #2 sees that #3 is wearing a red hat, then #2 knows that his own must be white – otherwise #1 would have seen R-R. If person #3 is wearing a white hat (regardless of #1’s color), then #2’s could be either color. Since #2 gives up, this means person #3 is wearing a white hat, and that #1 could be wearing either color.
Person #3 concludes that he is wearing a white hat. At first we might think he has arrived at his conclusion by working through the answers given by both #1 and #2. But #3 makes the statement (truthfully, we are told) that he knew his own hat color “before the beer was ordered” i.e. based only on the statement of #1. How is this possible?
It is possible only if #2 is wearing red. Hence when #1 gives up, #3 can conclude that #1 does not see two red hats. Therefore #3 knows his hat is white.
Additionally, #3’s statement tells us that #1 and #2 are not both wearing red. If they were, then #3 would have known his own hat color immediately – which would make his statement (re: when he knew his hat color) false, and we are told it is not.
Likewise, if #1 was in red and #2 in white, or both were in white, then #3 could not have been certain of his own hat color until #2 gave up – again, making his statement false. [Additionally, the solutions of W-W-W and R-W-W (1-2-3) could not be completely solved by us, the audience; Randi’s questions to us imply that we can solve it.]
Therefore, person #1 is in white, person #2 in red, and person #3 in white. This is the only solution which fits the information given, while making all statements “true”.
But again, Randi’s version is not as clear as it could be on the point of who speaks when. DropOfAHat Be sure to take him to task for this – as you said in the OP, this distinction is enormously important!