First, you'll need to tweak the finder so that it shows hidden files. Open up the Terminal (in your Applications:Utilities folder) and enter the following command:
defaults write com.apple.finder AppleShowAllFiles 1
Second, hold down Control and Option, and click on the Finder icon in the dock. Pick "Relaunch" form the little menu.
Now, all your files are visible, and you can find that hidden folder. Make a new folder (any name will do), and drag the contents of that hidden folder to the new folder you just created. Throw the hidden (now empty) folder into the trash.
That should be it, your files should be recovered. To set the finder back to normal, use the terminal command:
defaults write com.apple.finder AppleShowAllFiles 0
...and relaunch the Finder as above.
Finally, locate that Hide-Out program and drag it to the trash, because that's where it belongs.