[ifohdesigns]

<ul>
     <li><a href="mylink">my link</a></li>
     <li><a href="mylink">my other link</a></li>
</ul>

With the CSS

ul li a:hover {
     background: #00386e;
     color: #fff;
     padding: 5px; /*just for a little breathing room*/
}

The same principles can be applied directly to an anchor if you wish. Just use the right selectors to get to it.

Good luck!