Although your "a img" css code has border=0, but this …

Comment on Change Opacity – Image Hover Effect by Divya Sai.

although your "a img" css code has border=0, but this border may be coz of this:

#featured a img {
border:1px solid #bbb;

so make the border 0 as well.

Or in this code itself, you can add border elements as '0', like this:

a.linkopacity img {
filter:alpha(opacity=50);
-moz-opacity: 0.5;
opacity: 0.5;
-khtml-opacity: 0.5;
border: 0px;
}

a.linkopacity:hover img {
filter:alpha(opacity=100);
-moz-opacity: 1.0;
opacity: 1.0;
-khtml-opacity: 1.0;
border: 0px; }

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