if you refer to this link: http://www.lucifercosmetics.com/Foundation.html

Notice how, when you put your mouse over the links on the left side of the page that they go from Black to RED when you put your mouse on them?

I am trying to do that again with another site, and I cannot recall how to do it again.

Can someone tell me how this is done?

Open Page Editor > Links,Fonts > Link Colors. The red one is Hover colour so don't forget to check that.

That's what I thought it was, and I tried that option this time around as well. (still didn't work)

So I wonder if there is some other setting I must have set that, in any way, conflicts with this setting?

-just trouble-shooting here.

Did you set the link color using the text editor's link manager? This overrides link color settings made in the Page Editor->Links,Fonts tab, including the hover color.