wow I actually managed on my own 
I added another section to the the CSS file called "ee", removed all formatting and changed everything to zero pixels. That took care of removing the tab.
Changed demo.htm:
Code:
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml2/DTD/xhtml1-strict.dtd">
<html style="overflow:hidden" xmlns="http://www.w3.org/1999/xhtml" xml:lang="en">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" />
<link rel="stylesheet" type="text/css" href="ajaxtabs/ajaxtabs.css" />
<script type="text/javascript" src="ajaxtabs/ajaxtabs.js">
/***********************************************
* Ajax Tabs Content script v2.2- © Dynamic Drive DHTML code library (www.dynamicdrive.com)
* This notice MUST stay intact for legal use
* Visit Dynamic Drive at http://www.dynamicdrive.com/ for full source code
***********************************************/
</script>
</head>
<body>
<ul id="countrytabs" class="ee">
<li><a href="http://www.elysianempire.com/kb" rel="#iframe"></a></li>
</ul>
<div id="countrydivcontainer" style="border:0px; width:1000px; y-overflow:hidden">
</div>
<script type="text/javascript">
var countries=new ddajaxtabs("countrytabs", "countrydivcontainer")
countries.setpersist(true)
countries.setselectedClassTarget("link") //"link" or "linkparent"
countries.init()
</script>
</body>
</html>
Next in the ajaxtabs.js, I changed the defaultiframe line:
Code:
this.defaultIframe='<iframe scrolling="no" src="about:blank" marginwidth="0" marginheight="0" frameborder="0" vspace="0" hspace="0" class="tabcontentiframe" style="width:100%; height:auto; min-height: 1000px";></iframe>'
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