As of Version 6, SurfaceColor has been superseded by Specularity and Glow.
One could specify the variables explicitly like here :
ParametricPlot3D[{ r Cos[φ], r Sin[φ], Sqrt[r] Sin[φ/2]}, {r, 0, 1}, {φ, 0, 4 π}, ColorFunction -> Function[{x, y, z, r, φ, θ}, {Specularity[#], Glow[#]}& @ Hue[Rescale[φ, {0, 1}]]], PlotPoints -> {20, 60}, Boxed -> False, Axes -> False]

or adding a more thrilling variation of ColorFunction (singularity when r -> 0) :
ParametricPlot3D[{ r Cos[φ], r Sin[φ], Sqrt[r] Sin[φ/2]}, {r, 0, 1}, {φ, 0, 4 π}, ColorFunction -> Function[{x, y, z, r, φ, θ}, {Specularity[#], Glow[#]}& @ Hue[ Rescale[ φ/r, {0, 1}]]], PlotPoints -> {20, 60}, Boxed -> False, Axes -> False]
