We describe an experiment in which Bose-Einstein condensates and cold atom clouds are held by a microscopic magnetic trap near a room temperature metal wire 500 $mu$m in diameter. The ensemble of atoms breaks into fragments when it is brought close to the ceramic-coated aluminum surface of the wire, showing that fragmentation is not peculiar to copper surfaces. The lifetime for atoms to remain in the microtrap is measured over a range of distances down to $27 mu$m from the surface of the metal. We observe the loss of atoms from the microtrap due to spin flips. These are induced by radio-frequency thermal fluctuations of the magnetic field near the surface, as predicted but not previously observed.