Muslims often have this misconception that Allah is everywhere, or all around us. He is NOT!!! Allah is ABOVE THE HEAVENS.

http://www.missionislam.com/knowledge/whereallah.htm

http://godallah.com/where_is_god.php

Ayaat: `Certainly your Lord is Allah, Who created the heavens and the earth in six yaum (days or periods of time), and then He Istawa (rose above) His Throne. He He brings the night as a cover over the day rapidly, and the sun, the moon, the stars subject to His Command. Surely, His is the Creation and the Commandment. Blessed be Allah, the Lord of the universe!` [7:54]

Hadith: Muawiyah bin Al-Hakam As-Salmi said: `I had a slave-girl who used to herd sheep for me. One day I discovered that a wolf had killed one of her sheep, and I`m a man from the children of Adam, I get upset like they get upset, and I slapped her in the face. Then I went to the Prophet who impressed upon me the seriousness of my act. I said, `O Messenger of Allah, should I not set her free?` He said, `Bring her to me.` He asked her, `Where is Allah`, She said, `He is above the heavens.` He said, `Who am I?` She said, `You are the Messenger of Allah.` He said, `Free her, for she is a believer.` (Sahih Muslim, and Abu Dawud)