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I searched through WebmasterWorld and did not find a clear answer. I heard through a friend of a friend that google now penalizes sites for mouseovers. I know this is vague but it is what I was told and now I'm looking for more details. My guess is google may want to penalize a site if the mouseover is a url that does not match up to the href link.
-mac
Your friend was wrong, IMHO. There is no reason for Google to not like mouseovers. There is some debate about CSS mouseovers with regards to hidden text, but this has not been implemented in Google's algo yet, AFAIK.