I have same problem, but only with prev/next navigation - unlike in your case, the hidden post will show on next/prev links when reading normal (not hidden) posts too.
NOTE! Before continuing, the last item on list below is the actual problem described if you are in hurry, but I wanted to explain what am I doing so anyone could understand exactly why it's a big issue that makes it bad idea to implement a feature that would improve my sites usability.
My WordPress site: HackNBlog - Just another linux hackers ramblings
My case is this:
- I use Sideposts plugin to have all posts from "short news" category shown on Sidepost widget titled "Short News". They are also already hidden from main page and other post lists (except category and maybe tag lists, possibly also search, but it does not matter that they show on those).
- Some "short news", perhaps most, talk about new or updated post or page and have a link to it - In those cases I want the short news titles link to become useful. I use Quick Post/Page Redirect plugin to set those short news to redirect to the page or post they talk about.
- This works great, except for the prev/next navigation. Before the redirecting idea those short news showing in the prev/next navigation was only slight nuisance at worst but mostly just ridiculous, those posts were not bloggings but just small notifications of actual bloggings, pages, new features, code/software releases/examples, etc. and just serve no purpose to be shown like blog entry on it's own page. Besides, unless about page or older post edited but a new post I often post the short news right after - so the next link on the post page will be to short news entry of the post, and that has bothered me long, but the huge problem now is following...
- If the short news entry is set to redirect to the blog post it's about then the user choosing the nav-link "next" from the post will use link of short news and will thus redirect back to the post. This renders, on such points, the next/prev navigation useless. I originally tried to solve the lesser problem above on this with this plugin, but unlike then, now I can't use the redirection before this or another plugin can solve this.
Or perhaps I could code it... I have the skills but no time to work on another WP plugin with 2 under work but still... Maybe I could make my fork of Simplicity theme to support SidePosts and when around check the widget setting for chosen category and if the nav link is on that then skip over and link to next (or prev) post over that - that's actually exactly what sideposts tried, they hid sideposts from "latest posts" widget, front page and "older posts" page - they, as well as this plugin too, missed next/prev link hiding. However I keep hoping this plugin (and sideposts) would get this part of hiding corrected too
P.S. I will definitely mention your plugin on a post (real, not short news entry) because then you will have solved my problem.