Hum, his old habitat had the same kind of sand, and it was no problem.
He has a hollowed out log to hide under, but he never goes under there. I think you might be right about the insecurity part, since it's a new cage. I just rearranged a few things to try and give him a little more privacy. Later tonight I'll run out and get some new batteries for my camera, and I'll post picture of him and his setup.
Thanks for all your help so far though.
Edit: This is the kind of hollowed-log I'm talking about:
http://www.timelessspirit.com/images/dragons/1.jpg
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