Ok try this:
1. On step 1, add the code to
headinclude_bottom, not headinclude. Add at THE VERY end of it.
2. Ensure on each page you are having an issue with your display, that the closing tag for the head html has this line IMMEDIATELY before it, no other css style or javascript, like so
Code:
{vb:raw headinclude_bottom}
</head>
3. Ensure your javascript is enabled and you followed the other directions correctly. Also, this code uses opacity, which isn't fully supported in that syntax in IE. Beyond this, I don't see what else could be blocking your ability to use the code without being able to view the site live.
As a side comment, I see in the rollover.css file that the dd tag has an opacity setting, but no filter:alpha setting, this may be the IE compatibility issue mentioned earlier in the thread, but I'd have to test it to be certain