Are tou using the Xapt3r on a 1.6?? If not the only thing you should have to insulate is the bare pin sticking out on the bottom of the original version of the X3 chip. I stripped a piece of insulation from some speaker wire and slipped it over the pin, the new version of the X3 chip dosen't have this pin. If you have a version 1.6 the you should'nt be using the Xapt3r because to my knowledge it's not compatible with the v1.6.
P.S. freak sounds like you got a nice box but I feel sorry for you with that Thomson drive I had nothing but troubles with mine LOL