>Think of the old "events call methods". Set minimal flags/propertystates in the events if necessary and call a handler in the mouseover, which will also take care of the flags of latest mouseout

Yes, that's what I have.

I have onmouseover event like this:

function DivOnMouseOver()
{
   lDivOnMouseOver=true
   return true
}

But, when the mouse out is executed on the other div, this is not set yet and the mouse out event thinks the other div is not hovered yet.