You may ask, why would anyone want to hide columns in the first place when you have the "Properties" property? That's because for some reason on 10.1.1 this doesn't seem to be working under certain scenarios. May be because there are prompt macros in the data items I want to use for drill throughs even though I don't want them on the layout. I had even set them on all possible edges. Once I have this figured out with IBM, I will update on why the Properties property isn't working.
Latest update from IBM on why the "Properties" property is not working in a crosstab against a cube in 10.1.1 is possibly because of a defect.
So as a work-around, I had to pull in the columns and hide them.
Properties that you need to set to hide the columns:
Background Color : White
Foreground Color : White
Font : 0px
Size & Overflow : 0px
Border : 1 pt None Black
Padding : 0px 0px 0px 0px
The only down-side is that when exported to excel you will see 2 empty columns to the left of the crosstab object.