I looked using the "search" feature, but had no luck. This site: http://www.lindsayimages.com/ has what I'm looking for. When you scroll over the categories, the background changes as well as the navigation. If anyone knows how to do this, I'd be really appreciative! Thanks again!
The site you're refering to has accomplished what you're looking for by this code<td class="tableb" style="cursor:hand" onmouseover="this.style.backgroundColor='#FFD542';"onmouseout="this.style.backgroundColor='#FFEFB5';"><span class="catlink"><h2><a href="index.php?cat=2">Awards & Events</a></h2></span> </td>
(just take a look at the HTML output as well as I did, no particular trick), however it uses JavaScript to do that. You could even accomplish this by using plain CSS (take a look at the pseudo class definition catlink a:hover).
where do I put this html that you gave me?
edit themes/yourtheme/theme.php, find // HTML template for the category list
and edit the stuff beneath it accordingly.
Still not sure what you mean. How does it get incorporated with the current data?
You download the file, edit it as stated, then re-upload it.