> Hi,
>
> Is it specified somewhere in the docs that pseudo styles
> for links should be given in any specific order, and why?
> In the code below, the link in the blue paragraph becomes red when the mouse passes over, but the A:hover spec is simply ignored if it is not the last one.
[snip code]
That's because the cascading of the styles.
The last one overrules the earlier ones.

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> Is it specified somewhere in the docs that pseudo styles for links
> should be given in any specific order,
Not directly, but it's usually explained in tutorials.
> and why?
Application of logic to the rules set out in the specifications :-}
> In the code below, the link in the blue paragraph becomes red when
> the mouse passes over, but the A:hover spec is simply ignored if it
> is not the last one.
For selectors from the same source and of equal specificity, the last
takes priority. Something like that, anyway - don't ever believe what
Usenet tells you - treat it as potentially misleading clues, verify it
at the source. In this case the CSS spec cascading rules.
What the usual tutorials omit to mention is that selectors like
a:hover *will* select <a name="foo">bar</a>, which probably isn't what
you'd intend.
One hunch is that those who wrote the tutorials had only used MSIE,
which doesn't implement :hover to specification. Or maybe they
thought that use of <a name=...> had already been phased out, and
nobody had any legacy documents to which they were applying CSS. OK,
maybe you're in that lucky situation; but some of us have been doing
HTML since 1994-ish, and doing CSS since its early drafts (thanks to
the Arena browser), and have all kinds of legacy stuff to take into
account.
I do think the tutorials might mention a:link:hover (and optionally
a:visited:hover) as being more robust ways of selecting links without
accidentally affecting also anchors. You might want to style :active
too, and possibly even :focus, by the way.
There's a crazy mnemonic, "Las Vegas Forest Has Animals", to remember
an appropriate sequence for them. But that's not set in stone: it
rather depends on what you want to happen in the various scenarios.