Is my Dwarf Gourami trying to make a nest?

[lifesabitchandthenyoudie]

I have a pair, in a 60 litre tank with a few other fish. One (who I thought was female but if they are nesting looks like might be male) is acting in a way that I've read might be nesting:
'she' spends most of her time in the space formed by the heater and a block-thing that's in the tank; she/he seems very protective of it, even chasing the other gourami away. She/he seems to get mouthfuls of air (as in when they're breathing air as they do) but then go and spit it out in the 'safe' space. I've read they make 'bubble nests' in this way. Most recently I've seen the two of them doing a kind of 'dance' near the bottom of the tank, I assume as if she/he is trying to get the other one to spawn. But there's no nest yet...

My main concern is whether/how to encourage this behaviour, will it do them any harm to continue with no end-result? Assuming she/he is unsuccessful at creating the nest. But also the other fish will likely eat any babies if they are successful, would there be any way to stop this? (apart from another setup; I'm not wanting to breed, just to have 'happy' fish).