DPC 3212 modem : Is putting modem in a small cabinet a fire hazzard?

Our modem can only be put in a room where someone sleeps.
The lights on our Cisco phone/internet modem are too bright.  The lights are seeping out the vents.  There is no other solution but to put the modem in a smaller cabinet.
The cabinet is made out of wood and is an octagon.  It is about 2' x 2' x 3'.
If we were to leave the cabinet door open about 3 inches would putting the modem in there be a fire hazzard?
If a router fan is necessary is there one quiet enough to not prevent someone from sleeping?

I guess I should also say that the 2 computers that need internet also have airport cards so I really don't need to use the cat 5, I just wanted to give the others the opportunity to use the internet at the beginning and the end of the day. But now when I take the internet away, no one can access the server. Thanks for your help and advice. Mike

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