Of course it is possible! I think the easiest way is to change the jQuery code and use the .animate function instead of the .transition function:
$(".box").hover( function () {
$('.box').animate({height: 300, width: 300, marginLeft: '-=' + (300-75) / 2, marginTop: '-=' + (300-75) / 2});
}, function () {
$('.box').animate({height: 75, width: 75, marginLeft: '20%', marginTop: '20%'});
});
With a little creativity you get the same effect with a thin border;)
http://jsfiddle.net/GJJp4/71/
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