Since my last post on 1/14/09 with regards to highlighting list items, I have tested it out with different lists and have refined the code. This now works on many more lists then before. I have implement it on this site.
I have added it to the master page so that it will be available to the whole site. You do not have to do this. The code that I provided below can be used as is with a Content Editor Web Part and added to any page.
The original code was from from http://weblogs.asp.net/jan/. Here he posted a solution for highlighting a row in a list as you mouse over it. I have made only a change to how you reference the JQuery files. Post: http://weblogs.asp.net/jan/archive/2008/11/24/sharepoint-2007-and-jquery-2.aspx
My site uses this code throughout. You should be able to see the results anywhere you go.
Here is the code: