It is so hard to find exactly which line of code you are looking for within the Edit HTML portion of your template. I stumbled upon a little shortcut.
Click on 'Edit HTML'. Hit CTRL + F. Type in a little bit of what you are looking for in the box that pops up and press enter. In the example above, I searched for a:hover. The words that you entered will show up highlighted in blue in your layout. If that is not the portion of the template that you are looking for, click on 'next' in the find box until you see it.
For some reasons, this shortcut won't work with everything, especially widgets. I've had about a 75% success rate with it. Give it a go the next you work on your blog!