Nice and simple plugin, does as described and is easy to setup/configure.
This plugin (also available in Github) creates a custom content type (Glossary Terms) that basically consists of the term and its explanation. The term will be highlighted when it is used in other, selected content types, including other glossary terms. When you hover over a linked glossary term, its explanation appears in a jQuery tooltip whose appearance can be customized in the plugin settings.
Things this plugin does not do:
* Render HTML in the term explanation when it's shown in a tooltip. (I think this is a good thing)
* Provide its own archive/index view of all terms. (You'll need to create a page template or the default archive template will be used. Also not a bad thing.)
* Highlight glossary terms when they appear on home and archive pages, and in post excerpts. (This makes sense too.)
* Provide a taxonomy. You can't tag or categorize your terms, for example. (You could add this functionality yourself if you need it, however.)
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