Aloha,
Yes, the waste baskets can be covered, or have a lid when visible.
Even with that though, she'd recommend not having one in one of your good directions of you bedroom or office. The house in the Essentials DVD had a covered diaper waste basket in the baby's health corner of his room. Marie had that moved.
A waste basket in the living room... I can't say I've ever seen that. I even did a quick poll around the offices just now and didn't find someone who has, or grew up with one there. Maybe it's just not a Midwest thing
Junk mail goes in recycling, which is either covered or hidden.
I talked to the editor of our Feng Shui newsletter and she said that long before she started her training with Marie in Feng Shui, she did a lot of "Feng Shui friendly" things naturally because she flipped a lot of homes. Knowing you are going to be having a lot of people visiting/looking at your house, there are things you always do and don't do. Here were a couple she mentioned. Do they sound familiar?
Do:
Keep your windows clean. (see the "Body/Home Connection" section in Level One's Purity Facet.)
Have waste paper baskets out in the open if you can help it, and if they are, make sure they are covered and add to the room, or blend in to the point people don't realize they are there.
Keep your toilet seat lid down.
Much Love,
Shawn