Para poder integrarlo en vuestro blog, vamos a Plantilla, Editar HTML y buscamos </head>, antes pegamos esto:

<script>
//<![CDATA[
/************************************************************************/
/* Rainbow Links Version 1.03 (2003.9.20) */
/* Script updated by Dynamicdrive.com for IE6 */
/* Copyright (C) 1999-2001 TAKANASHI Mizuki */
/* takanasi@hamal.freemail.ne.jp */
/************************************************************************/
var rate = 20; // Increase amount(The degree of the transmutation)
if (document.getElementById)
window.onerror=new Function("return true")
var objActive; // The object which event occured in
var act = 0; // Flag during the action
var elmH = 0; // Hue
var elmS = 128; // Saturation
var elmV = 255; // Value
var clrOrg; // A color before the change
var TimerID; // Timer ID
if (document.all) {
document.onmouseover = doRainbowAnchor;
document.onmouseout = stopRainbowAnchor;
}
else if (document.getElementById) {
document.captureEvents(Event.MOUSEOVER | Event.MOUSEOUT);
document.onmouseover = Mozilla_doRainbowAnchor;
document.onmouseout = Mozilla_stopRainbowAnchor;
}
function doRainbow(obj){
if (act == 0) {
act = 1;
if (obj)
objActive = obj;
else
objActive = event.srcElement;
clrOrg = objActive.style.color;
TimerID = setInterval("ChangeColor()",100);
}
}
function stopRainbow(){
if (act) {
objActive.style.color = clrOrg;
clearInterval(TimerID);
act = 0;
}
}
function doRainbowAnchor(){
if (act == 0) {
var obj = event.srcElement;
while (obj.tagName != 'A' && obj.tagName != 'BODY') {
obj = obj.parentElement;
if (obj.tagName == 'A' || obj.tagName == 'BODY')
break;
}
if (obj.tagName == 'A' && obj.href != '') {
objActive = obj;
act = 1;
clrOrg = objActive.style.color;
TimerID = setInterval("ChangeColor()",100);
}
}
}
function stopRainbowAnchor(){
if (act) {
if (objActive.tagName == 'A') {
objActive.style.color = clrOrg;
clearInterval(TimerID);
act = 0;
}
}
}
function Mozilla_doRainbowAnchor(e){
if (act == 0) {
obj = e.target;
while (obj.nodeName != 'A' && obj.nodeName != 'BODY') {
obj = obj.parentNode;
if (obj.nodeName == 'A' || obj.nodeName == 'BODY')
break;
}
if (obj.nodeName == 'A' && obj.href != '') {
objActive = obj;
act = 1;
clrOrg = obj.style.color;
TimerID = setInterval("ChangeColor()",100);
}
}
}
function Mozilla_stopRainbowAnchor(e){
if (act) {
if (objActive.nodeName == 'A') {
objActive.style.color = clrOrg;
clearInterval(TimerID);
act = 0;
}
}}
function ChangeColor(){
objActive.style.color = makeColor();
}
function makeColor(){
if (elmS == 0) {
elmR = elmV; elmG = elmV; elmB = elmV;
}
else {
t1 = elmV;
t2 = (255 - elmS) * elmV / 255;
t3 = elmH % 60;
t3 = (t1 - t2) * t3 / 60;
if (elmH < 60) {
elmR = t1; elmB = t2; elmG = t2 + t3;
}
else if (elmH < 120) {
elmG = t1; elmB = t2; elmR = t1 - t3;
}
else if (elmH < 180) {
elmG = t1; elmR = t2; elmB = t2 + t3;
}
else if (elmH < 240) {
elmB = t1; elmR = t2; elmG = t1 - t3;
}
else if (elmH < 300) {
elmB = t1; elmG = t2; elmR = t2 + t3;
}
else if (elmH < 360) {
elmR = t1; elmG = t2; elmB = t1 - t3;
}
else {
elmR = 0; elmG = 0; elmB = 0;
}
}
elmR = Math.floor(elmR).toString(16);
elmG = Math.floor(elmG).toString(16);
elmB = Math.floor(elmB).toString(16);
if (elmR.length == 1) elmR = "0" + elmR;
if (elmG.length == 1) elmG = "0" + elmG;
if (elmB.length == 1) elmB = "0" + elmB;
elmH = elmH + rate;
if (elmH >= 360)
elmH = 0;
return '#' + elmR + elmG + elmB;
}
//]]>
</script>

Con ese script, podrás hacer que todos los links de tu blog tengan ese efecto, puedes ver mejor como funciona este efecto en este blog de pruebas.