You don't add Hidden=1 to the code...you replace the width and height with Width="1" and Height="1". To use the default vitals, just delete the VITALS section (the follwing part is the vitals section):
Code:
<!--VITALS-->
<Mapping ArtAssetID="player_vitals_backdrop" FileName="Vitals/vitalbg_default.tga" />
<Mapping ArtAssetID="pet_vitals_backdrop_mini" FileName="Vitals/vital_pet.tga" />
<Mapping ArtAssetID="escort_vitals_backdrop_mini" FileName="Vitals/vital_escort.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop" FileName="Vitals/vital_vs.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_signature_good" FileName="Vitals/vital_signpc.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_defender_good" FileName="Vitals/vital_defender.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_master_defender_good" FileName="Vitals/vital_masterdef.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_avenger_good" FileName="Vitals/vital_avenger.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_hero_good" FileName="Vitals/vital_hero.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_signature" FileName="Vitals/vital_sign.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_elite" FileName="Vitals/vital_elite.tga" />
<Mapping ArtAssetID="opponent_vitals_backdrop_elitemaster" FileName="Vitals/vital_elite.tga" />
<Mapping ArtAssetID="swarm_vitals" FileName="Vitals/vital_vs.tga" />
<Mapping ArtAssetID="level_background" FileName="Panels/inv.tga" />
<Mapping ArtAssetID="level_background_red" FileName="Panels/inv.tga" />
<Mapping ArtAssetID="selection_inanimate_backdrop" FileName="Vitals/vital_misc.tga" />
Of course, if you need the fervour/focus meter (champ/hunter), you'll have to figure out what to do with it on your own, since Daimon's UI places it over the player vitals.