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You could use border-top, border-bottom and background colour for a rather pleasing effect. Or how about using a very small tiling graphic as a background, perhaps also with borders? It would need to be small enough to load almost instantly (but it only has to load once) and not to make the text unreadable:
a:hover { backgound-image: url(link_bground.gif); }
You could experiment with an animated graphic if you really want, but I think that might be going a bit over the top.
[edited by: rewboss at 9:19 pm (utc) on Aug. 10, 2002]
unique mouseover
Once you get the basic technique I don't think there's too much room for innovation in this area. Your imagination - images used, placement, context or total effect will be the key factors in someone remembering your site.
You could use the old trigger another image rollover effect here [webbuilder101.com]. This only illustrates the technique - nothing fancy.
M
Create an animated gif to use as a background image. Make it a pulse of color, moving down, up, or sideways. Use a limited spectrum, perhaps one shade going from unsaturated to very saturated and back. Because you're going to use it in the background, it can be a very small strip, at least in one dimension and then tile.
The "off" state hides the entire background image with a solid gif. The mouseover state brings in an image with some transparency - and the color pulse shows through only in those selected, transparent spots. Keeping it simple (and minimal) makes for a memorable but not overwhelming effect.
Because the user triggers the animation and it's not on screen all the time, this can be a very tasteful use of animation.