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Ah that's the problem, I see. That doesn't work here either, but I can tell you why and how to fix it: For some reason IE won't fire onmouseovers on empty divs, unless the mouse is moved over a visible border. You can solve your problem by simply putting a transparent image in the background.

Create a 1×1 pixel transparent .gif (I'll call it 'blank.gif'), put it where your .css is, change the lines

#imglink {position:absolute; height:306px; width:100%;
z-index:100; opacity:.4;filter:alpha(opacity=40)}
.linkhover {background:url(images/link.gif)
center center no-repeat}