Thats right Kevin, I had a Kerosun heater that after it got fired up (outside), the fumes were non existent. When you turn it off you also need to take it outside. Start up and turn off were the only times it smelled. It worked well and lasted quite a while. Kerosene has skyrocketed in price around here now, I recall HD selling it for about $5/gal
The Reddy heater you show is the style I mentioned to Pete in his first post. I should think that even thought the idea is to keep the warm air in and the cold air out as he mentions and pretty much goes without saying, any fuel fed heater will require an oxygen source since it is the oxygen in the room they consume. In Pete's case, it sounds like there are plenty of sources for that. You can purchase a Reddy heater in Kerosene or Propane. The kerosene ones do tend to emit a bit more smell. The other drawback is they are quite noisy. At any rate, I should think far more cost effective then anything electric resistance heat offer's. The fan forced Reddy heaters are the standad in construction because of the enourmous BTU capabilities available. The homes I built in Maine had these available in the later months of consruction.