Despite of the last post was old, I have the same issue with Ubuntu 10.10.
RodGer, I found a temporally fix to use a side panel with compiz+cube+rotate 
cube.
I think that the problem is that exist two actions associated with put the 
mouse over the side of the screen.
If you looking for bindings "Rotate Flip Left" and "Rotate Flip Right" in the 
config section of "Rotate Cube" plugin, you can find these actions associated 
with left and right side. If you disable these bindings, you are allow to use 
it to show the panel in the side.
These two bindings are enable despite of the option "Edge Flip Pointer" are 
disable and create a conflict with the action to shows the side panel.
Considering that this option is disabled by default, may be the fix will be set 
this two bindings as "None". And when this option are enable, show a warning 
message if you have some side panel.
I hope it was be helpful.
Regards

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https://bugs.launchpad.net/bugs/489114

Title:
  Side (vertical) gnome-panels won't show up on mouse over, if selected
  to autohide.[ubuntu 9.10](compiz related)

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