From the Visual Basic for Applications help:
When an object is hidden, it's removed from the screen and its Visible property is set to False. A hidden object's controls aren't accessible to the user, but they are available programmatically to the running application, to other processes that may be communicating with the application through Automation, and in Windows, to Timer control events.
Not much help there I'm afraid, and I couldn't find much else through Google.
As you said yourself, the Select method and Selection Property don't work on a hidden Worksheet, they should work on a hidden Workbook though. (Please correct me if I'm wrong.) In general however, it's not always all that efficient to select ranges in worksheets anyway, you are better off working with the Range property (which does work on a hidden worksheet).
EDIT:
The following code will change the color of A1:A8 to Cyan even when the Worksheet is not visible:
Dim book2 As Workbook
Set book2 = Workbooks.Open("C:\Book2.xls")
book2.Worksheets("Sheet1").Visible = False
book2.Windows(1).Visible = False
With book2.Worksheets("Sheet1").Range("A1:E8").Interior
.ColorIndex = 8
.Pattern = xlSolid
.PatternColorIndex = xlAutomatic
End With
book2.Windows(1).Visible = True
book2.Worksheets("Sheet1").Visible = True