It is most certainly a bulging battery. I wouldn't power on the machine anymore or plug in the laptop until it is fixed. Is there an Apple store around there? This happened to Tim's laptop a few months ago. It was 4 years old and Apple wouldn't replace the battery but they (for free) took out the battery and now it can be used without a battery (it has to be plugged in). I also had the option to have it replaced fro $129 I believe. Since I didn't use the laptop, I decided to just have it removed. If you fix it yourself, I would be very careful not to damage the battery. There is a reason it is bulging.
My concern is not losing power temporarily, it is lightning that strikes close that it takes out the equipment (this can happen even with a surge protector).
That's interesting. I haven't even looked at the Yggdrasil because I wouldn't buy a DAC (or amp) that needed to be on all the time. We have too many major thunderstorms here so I keep my main gear unplugged when not in use.