In FF2 it shows a problem nicely ; mousing over a red marker causes it
to flash red-white-red-white. Mouseover triggers an image change ; I
suspect that causes a mouseout event on the original image and enters
a loop, because as soon as the image is changed a mouseover event
occurs again.
One way to prevent that would be not have a mouseout event listener on
the original marker at all. A mouseover event could be used to
position a temporary 'highlighted' marker over the top of the original
marker (that would still cause a mouseout event but no action would be
triggered). A mouseout listener on the highlighting temporary marker
is used to remove the temp marker from view (park it at the north pole
or somesuch).
I believe the orange markers are inert in FF2 because the API is
interpreting the 'shape' coords with reference to the whole sprite
sheet, not just the selected part. Couldn't say if that is intended
behaviour or not?
In IE6 there is clearly something wrong, mousing over an orange marker
just makes it vanish altogether, but IE6 is unsupported after all.
As it doesn't have much to do with your code, all this may have
nothing to do with your problem.