This is a known issue with the Cube. There is an Apple Paper listing the solution of replacing the ring inside the Cube. It is up against the power button. I thought I had this issue when I got my first Mac, a Cube last winter, but seem to have solved it by placing the metallic cable so that it between the outer case which has a metallic based lining and the metal frame. I thought it might be a grounding issue. The button is based on electrostatic changes and not infrared. I would think that placing it in an enclosed area won't be a problem if the bottom and top of the Cube have adequate air flow along with adequate air flow for the Power brick. However I am always open to suggestions.... David A New Owner