I'm looking for examples of UI implementations where, instead of highlighting the background of the active row, the boundaries expand and overlap the boundaries of the row above and below. Possible?
I very much doubt it with an HTML table... You would probably need to build a "table" display up with DIV elements and have each of them absolutely positioned with the hover effect on them. Certainly do-able like that, but not something that DataTables will support (since its an HTML table). The best you could try would be to set position:absolute on the TR elements and try manipulating them - but I think what happens there is going to depend very much on the browser's rendering engine...
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Allan