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I have just set up cages in my garage and made sides about 6 inches tall out of a foam board to help keep the shavings in. I used the 42X28X30h dog kennels with a double door. The large door on the long side gives me great access for cleaning and the height allows me to put 2 perches in for them. I am using them as grow out pens and will also use them for breeding cages. So far, so good. I also bought on that is a little smaller and only has one door. Got them from Craigs list and bought 2 of them at a great price and free shipping on line. I have them elevated on a picnic table right in front of a couple of windows so they get natural light. I do have heat lamps to use on top of them but they are getting old enough now that I only turn them on if it is really, really cold. The garage stays pretty warm. I am also getting one set up with the pelleted pine to see if I like that better than sand or shavings. My cages all have removable plastic pans on the bottom so it is solid flooring. I just clean the litter and I don't take the pans out unless I need to wash them. I don't feel good about the birds on wire all the time either. Just thought I'd add to the suggestions for you.
If you mean styrofoam board, they will eat that. You can use wood or plastic to keep the bedding in the cage.
No it is a covered styrofoam and I completely covered each board in clear heavy duty postal tape so I could wipe them off.