It completely overlooked the 12vAC. When I see 12v I was thinking 12v DC cause that was the fan I had just picked up....
I'll sort it out tomorrow. At least I know the problem now. Thanks for keeping me in check guys!!
It doesn't look like it, but the fan has 2 1/2" clearance from the top.... thats plenty of clearance to pull a little air and keep air circulating.