I managed to do a similar thing in Silverlight 4 for a ListBox popping under an AutoCompleteBox, but it was copious amounts of Binging and XAML rape.
Basically you have to create a ListBoxItem style and force some control template hackery under it. This then you can apply on your ListBox and it should work.
I just copied the relevant code from the project I'm working on so you'll have to tweak it a bit, but it does change both the font and the selection rectangle colour on mouse over, so should be a great start.
<Style x:Key="MyListBoxItemStyle" TargetType="ListBoxItem">
<Setter Property="Foreground" Value="#FF4C4C4C" />
<Setter Property="FontStyle" Value="Normal" />
<Setter Property="FontWeight" Value="Bold"/>
<Setter Property="FontFamily" Value="Arial"/>
<Setter Property="Template">
<Setter.Value>
<ControlTemplate TargetType="ListBoxItem">
<Grid Background="{TemplateBinding Background}">
<VisualStateManager.VisualStateGroups>
<VisualStateGroup x:Name="CommonStates">
<VisualStateGroup.Transitions>
<VisualTransition GeneratedDuration="0:0:0.2" To="MouseOver">
<VisualTransition.GeneratedEasingFunction>
<CubicEase EasingMode="EaseOut"/>
</VisualTransition.GeneratedEasingFunction>
</VisualTransition>
<VisualTransition From="MouseOver" GeneratedDuration="0:0:0.1">
<VisualTransition.GeneratedEasingFunction>
<CubicEase EasingMode="EaseOut"/>
</VisualTransition.GeneratedEasingFunction>
</VisualTransition>
</VisualStateGroup.Transitions>
<VisualState x:Name="Normal"/>
<VisualState x:Name="MouseOver">
<Storyboard>
<DoubleAnimationUsingKeyFrames Storyboard.TargetName="fillColor" Storyboard.TargetProperty="Opacity">
<SplineDoubleKeyFrame KeyTime="0" Value="1"/>
</DoubleAnimationUsingKeyFrames>
<ColorAnimation Duration="0" To="#FFFFFFFF" Storyboard.TargetName="contentPresenter" Storyboard.TargetProperty="(Control.Foreground).(SolidColorBrush.Color)" d:IsOptimized="True"/>
</Storyboard>
</VisualState>
</VisualStateGroup>
<VisualStateGroup x:Name="SelectionStates">
<VisualState x:Name="Unselected"/>
<VisualState x:Name="Selected">
<Storyboard>
<DoubleAnimationUsingKeyFrames Storyboard.TargetName="fillColor2" Storyboard.TargetProperty="Opacity">
<SplineDoubleKeyFrame KeyTime="0" Value="1"/>
</DoubleAnimationUsingKeyFrames>
</Storyboard>
</VisualState>
</VisualStateGroup>
</VisualStateManager.VisualStateGroups>
<Rectangle x:Name="fillColor" IsHitTestVisible="False" Opacity="0" RadiusX="1" RadiusY="1" Fill="#FF1f6cae"/>
<Rectangle x:Name="fillColor2" IsHitTestVisible="False" Opacity="0" Fill="#FF000000" RadiusX="1" RadiusY="1"/>
<ContentControl HorizontalAlignment="Left" Margin="{TemplateBinding Padding}" x:Name="contentPresenter" Content="{TemplateBinding Content}" ContentTemplate="{TemplateBinding ContentTemplate}" Foreground="#FF4c4c4c"/>
</Grid>
</ControlTemplate>
</Setter.Value>
</Setter>
<Setter Property="FontSize" Value="14"/>
</Style>
It should go straight under UserControl.Resources and you'll be ready to bind it.
Let me know if you managed or need more explanation!