Sorry for the strange title: because I don’t know what this effect is called I have no idea how to search for it via Google or on Stack Overflow…
An example of what I’m trying to describe can be found on the Yahoo Mail “compose message screen.” When you finish entering an email address (or select an auto-complete suggestion) the text of the email address in the “To:” box has a style applied that makes it look like a button:

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What is the name of this effect?
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Where can I find a reference as to how to duplicate it?
This sounds like it will work for you.
http://ivaynberg.github.com/select2/#tags