I live in PA. I received a Civil Action on Saturday 1/10/09 for a court hearing in February. I call and made a settlement with the credit card / debit collector today. They told me I did not have to go to the hearing because of the agreement. Should I still go to the hearing or does the hearing get canceled?

YES, go to the hearing. If the collection agency isn't being honest with you, it's going to be a default judgment and you'll have to pay the full amount. Get something in writing from them stating that they agree to settle and take it to court.