I finally got around to rewriting the flickrnotes code i wrote to support IE6/7 as well as overlib. Ironically, as a side effect, I had to do this funky opacity thing because in IE you cant have onMouseOver() on an ‘empty’ DIV or SPAN tag unless it has a background color. However, background colors with opacity work just fine.
One could always just keep the Opacity 0% and mess with outlines but i kinda got to liking this look.
Download it here (and rename it to a .php) you will need overlib.js (4.21 is what i use) installed too. An example page is here, read the source for an example.