I have done extensive research on this family. the "Blue Fugates" were not indians but had a genetic disorder that made them appear "blue". You can look up "blue fugates" in a search engine and there are articles about it. www.straightdope.com/classics/a980724.html - 12k - Cached
I found no American Indians in this family line. I have traced this line back to France- where the disorder came from here is my husbands Fugate line;
Katherine Fugate married into our McIntosh line
she was born in Virginia in 1793 d. 1823 Troublesome Creek, Breathitt County, KY(they came to KY)
her line goes:

Benjamin Fugate married Hannah Devers

John Fugate married Sara Henley

Josiah Fugate married Mary Martin

Peter La'Foucet or Fugate from France (b. 1650) married Frances Mould- this is as far as I went but others have gotten further. I have dates and further info on this line if anyone is interested, email me at liz_banks2000@yahoo.com

en.wikipedia.org/wiki/Blue_Fugates - another "Blue Fugates link