\documentclass{article}
\usepackage{lineno}
\begin{document}
\linenumbers
\modulolinenumbers[255] % To switch off the showing of the numbers on margins
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Ut purus
elit, vestibulum ut, placerat ac, adipiscing vitae, felis. Curabitur
dictum gravida mauris. \linelabel{line:Nam}Nam arcu libero,
nonummy eget, consectetuer id, vulputate a, magna. Donec vehicula
augue eu neque. Pellentesque habitant morbi tristique senectus et
netus et malesuada fames ac turpis egestas. Mauris ut leo. Cras
viverra metus rhoncus sem. Nulla et lectus vestibulum urna fringilla
ultrices. Phasellus eu tellus sit amet tortor gravida placerat.
Integer sapien est, iaculis in, pretium quis, viverra ac, nunc.
Praesent eget sem vel leo ultrices bibendum. Aenean faucibus. Morbi
dolor nulla, malesuada eu, pulvinar at, mollis ac, nulla. Curabitur
auctor semper nulla. Donec varius orci eget risus. Duis nibh mi,
congue eu, accumsan eleifend, sagittis quis, diam. Duis eget orci sit
amet orci dignissim rutrum
The sentence ``Nam arcu libero'' starts at line~\ref{line:Nam}
\end{document}
\labelrefers to the last\refstepcounter{<counter>}. If you use your own counter like that than it isn't a problem. Numbering every line is a different challenge. – Martin Scharrer♦ May 13 '11 at 21:45\refstepcounter{...}followed by a\label. This would cause proper references I think. Also have a look on thezrefpackage. It provides a wide variety of referencing features. – Martin Scharrer♦ May 13 '11 at 21:56