Another possibility is to predefine the template of GridViewRow and position the Border elements which is responsible for MouseOver/Selection effects on the Top of the DataCellsPresenter (element responsible for displaying GridViewCells). These elements use colors with no Transparency - so if you want to apply some cell style and maintain these Borders on the top of the cell's Background you should use colors, which allow transparency. Otherwise the content of the cells will be lost.
I have prepared small sample demo which illustrates how this can be achieved.
the Telerik team