This skill allows you to hide in a room's shadows. While hiding, you are effectively invisible. It also enhances the backstab skill. The minute the person hiding moves, he becomes visible.
This skill is fairly useless in actual combat, as monsters tend to be able to see right through hiding. It is useful for playing around with other players however, as it cannot be passively detected by sight, even by someone with see invis. People using enhanced hearing, smelling, or mindsense can still find you however. Using the sneak skill alongside hide enables you to move while remaining hidden. It should be noted that there is still a chance for hiding to drop when you move, and that players in the room you're entering can see the status fall. Players don't get a message when you use it however, so you can use sneak to walk into a room, then use hide and be hidden so long as they don't look between when you enter and when you hide…
*slaps a giant sticker labeled "USE ONLY FOR GOOD!" on this skill*