You have to include the jquery ui core in your pages in order to animate bordercolor. After you grab the jquery ui, you can code it like I have below. It's important to remember that you have to animate each side of the border separately:
$thumbs = $('.img');
$thumbs.mouseover(fadeBorderIn);
$thumbs.mouseout(fadeBorderOut);
fadeBorderIn = function() {
$(this).stop().animate({
borderTopColor: #FF0000,
borderBottomColor: #FF0000,
borderLeftColor: #FF0000,
borderRightColor: #FF0000
}, 'slow')
},
// Remove Border Color
fadeBorderOut = function() {
$(this).stop().animate({
borderTopColor: #FFF,
borderBottomColor: #FFF,
borderLeftColor: #FFF,
borderRightColor: #FFF
}, 'slow')
},