Depending on what you're showing the code for, line numbers may be almost essential, or at least very useful; here's a sample I did a while back for someone to use as a model for a tutorial:
<http://webtuitive.com/samples/code-as-list.html>
Of course, it doesn't do anything exciting in IE, since the example uses ol:hover -- try it with Moz/Konqueror/Opera :-)
Hassan,
Personally I would find your line-numbering technique more effective if the line numbers showed up by default (perhaps dimmed) [this would serve IE users as well], and then the current line and its number were highlighted on hover. Especially with indented code it's not always easy to track back over to the margin to see what line you're on.
Cheers,
Paul
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