This is .NET code for an event you want to perform on the client side of a web control. So it's not going to do anything, even if there were an event for it.
You need to write javascript that hooks into the HTML table row onMouseOver event. I usually achieve this by writing the following into the OnDataItemBound event of the datagrid (in .NET 1.1):
e.Item.Attributes("onmouseover") = "rowHover(this);";
e.Item.Attributes("onmouseout") = "rowLeave(this);";
Then the javascript methods 'rowHover(row)' and 'rowLeave(row)' handle the details of the changes, whether they are just CSS class changes (better technique for style application) or literal style setting assignments.
Now, I don't know what the events are for the new 2.0 equivalent of the datagrid is. But they should be easy enough to find in the IDE.
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Peter