I haven't been able to find much information at all in regards to ArcGIS 10.1 Function Template Chains... I need to be able to load a .rft in my image service and calculate statistics... so I am using the Arithmetic Function, multiplying the raster by 3.28084 in order to convert from meters to ft. Now this produces the right values, however it does not calculate statistics in order to display the image within the proper range... The pixels calculate, but the image remains symbolized in the original range. I can manually calculate statistics in ArcCatalog, but if I am supposed to be able to export this function as a .rft for use in my image service, how do I also make it calculate statistics so the user can apply the function and view the image properly?? It seems as if there should be another function called Update Raster.. or Calculate Statistics so when you apply the function it automatically does it, but no such function exists...
So I'm also getting going on image service and raster functions.
At least to address the symbology portion of your question:
I published an image service and used the Colormap function as the final step to choose a color ramp for the exported image.
Color map will allow you to choose a color ramp type and from / to colors. Good luck.