If the characters are expecting a creature to be in a particular place (e.g. someone told them where the creature is), but the creature is hiding and wins its stealth check, are the characters surprised?
"Knowing" that a creature lives in the cave and being able to perceive exactly where it is are two separate things. So, yes, the creature could still surprise them.
However, if the DM allows it, the characters could potentially use a readied action to strike when the creature jumped out at them. I would, as a DM, still require a successful Perception check to be able to interrupt his action. If they were successful, then I would allow them to act before the creature struck and his surprise would be negated. If they were not successful, then I would let the creature strike with stealth and surprise and then allow those who readied an action to get their standard action as part of the surprise round which normally they would be denied.
That is how I would run it according to the rules, although others may disagree.
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You can't ready actions out of combat. It is a combat action and means nothing when not in combat.
How I would handle it is to give each player a bonus on perception checks to see the creature, as they were given info as to where it was. The more exact the info, the higher the bonus. Those that still fail will be surprised. Those that make it, get to act in the combat round.
If anyone says "But we knew it was coming" remind them that in scary movies, you usually know the scare is coming too, but it can still get you if it is good enough.
That is why I said "if the DM allows it" as the way around that is to roll initiative and everyone work in initiative order and technically you are in combat and can now ready an action because you know the bad guy is there, but you have not actually seen him yet as in the case the original poster mentioned.
Just because players expect an enemy to be in a certain place it does not impart to them any benefit for combat.
If the enemy successfully hides from the PCs he will get a surprise round, and the PCs will be unable to act in the surprise round unless they have some special ability that allows otherwise.
