I am trying to change style on mouseover.
My Code is:
Edit: As Rohit pointed out in the comments,
This won't work on Windows 8 because of some changes in PresentationFramework where default template of button is declared. ... In Windows 7 default template of button doesn't have that ControlTemplate trigger. That's why your posted code works fine on Windows7 but it won't work on Windows 8 and higher.
Rohit's answer about DependencyProperty Precedence being the cause is correct, but there's a much simpler way of fixing it than overwriting the Button's Template.
If you review the DependencyProperty Precedence List, you'll notice that properties set in the have a higher precedence than Triggered properties, which is why your button will always use the background you have defined in your tag.
If you move the Background property to the itself, then triggered property will work since Triggered properties take precedence over properties defined in a Style.