In the first place you need a parametric representation of $S$. Note that nobody would guess from the equation $x^2+y^2=1$ that this curve has length $2\pi$. So your equation $n\cdot \gamma'(t)=0$ is of no help.
Given the "soul" $t\mapsto \gamma(t)$ of $S$ and assuming that the curvature $\kappa$ of $\gamma$ is nonzero there is a well-defined orthonormal Frenet frame $\bigl(e_1(t),e_2(t),e_3(t)\bigr)$ along $\gamma$ with $e_1=\gamma'$ (assuming $t$ is arc length), $e_2$ in the osculating plane, and $e_3:=e_1\times e_2$.
In terms of this frame a parametric representation of $S$ is given by
$$(t,\phi)\ \mapsto\ {\bf r}(t,\phi):= \gamma(t)+r(t)\cos\phi\ e_2(t) +r(t)\sin\phi\ e_3(t)\qquad(a\leq t\leq b,\ 0\leq\phi\leq 2\pi) .$$
The area $\omega(S)$ of this surface is then obtained as follows:
$$\omega(S)\ =\ \int_a^b\int_0^{2\pi}\ |{\rm r}_t\times {\rm r}_\phi|\ d\phi\ dt\ .$$
Because of the so-called Frenet equations for the $e_i'$ it turns out that we can compute the integrand $|{\rm r}_t\times {\rm r}_\phi|$ without actually computing the $e_i$. The result is
$$|{\rm r}_t\times {\rm r}_\phi|^2=r^2\bigl(r'^2 +(\kappa r\cos\phi-1)^2\bigr)\ .$$
Unless $r'(t)\equiv0$ (a tube of constant radius) or $\kappa(t)\equiv0$ (the "soul" is a straight line) the "inner" integration $\int_0^{2\pi}\ldots\ d\phi$ will result in a complete elliptic integral, which cannot be done in elementary terms.
I played around with the idea of approximating the tube as piecewise tori, but couldn't convince myself the surface area of such approximations converged to that of the tube... but maybe using cylinders (or truncated cones?) as you suggest is easier.
– user7530 Nov 16 '11 at 20:58