Do not use the red cedar meant for lining closets, trust me. It smells great for closets, but you don't want to use it in a small confined area with cigars, it'll make you ill.
I made some racks for cigar boxes out of the everyday cedar found in wood section, and it works good in my case. Don't know if you want to use a large amount of it, as it does still give off a heavy non spanish cedar odor, not nearly overwhelming as the aromatic though.