Thanks DEADPOOL,
Sweet name btw. I gave your suggestions a try, I moved the pi behind the cabinet further, I then even tried laying a light piece of fabric over the flirc. It didn't seem to matter, if the light was off in any of those scenarios I got multiple keypresses. It's so bizzarre.
I also tried pushing a sigle button then covering the flirc completely with my hand, it didn't stop the keypresses. I have plugged the flirc into my ubuntu machine and updated the firmware to 2.3. Still weird behavior without the light on. It has to be that light as well, I've tried opening the blinds and turning on all the other lights, but if that one is off I get multiple keypresses.. So strange! Any other ideas?