Dlight,
What are you trying to feed it? Have you tried brine or mysid shrimp, by chance, frozen? The LFS is my area only feed this to the aggressive fish, as we found out, so thought it might be the same for your guy. Remember, if you try live it will be hard to wean him off later!
As for your cage idea....how about some patience? <g> Give the guy some time to settle in. Took our wrasse a week to begin to seriously eat.
Lynda