I am finally playing Black Riders, campaign mode. In the Quest Phase staging, the encounter card revealed was "Crawling Towards Him". It has: "Peril. Hide 2." The active location is "Woody End", so my test is actually "Hide 1." I committed Sam Gangee (3 quest points) to the hide test. The card revealed from the encounter deck for the hide test is the objective-ally Gildor Inglorion. What happens?

He has no threat (like a treachery), so you would pass the hide test. You don't resolve "when revealed" effects during a hide test, so Gildor gets discarded.

Teamjimby -- thank you very much for your answer! Now I can get back to my game and know I am playing correctly!