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If the wood stove is in the basement it will heat up the rest of the house but if it is not in the basement you have to find some way to vent it down there.
depends on whether you have to pay for the wood... if the wood is free then you can't beat the costs.
Wood Stoves are not designed to burn wood all the efficiently and the coals you see are normal. There really isn't a lot you can do to improve the burning efficiency of your wood stove. If the stove is heating properly and you have a small amount of unburned charcoal, you are doing everything fine.
No. First, the water will never be hotter than 212 degrees F (or 100 degrees Celsius). Above that, it becomes steam. Secondly, much of the heat output goes up the chimney.
I have a wood stove and have burned cedar in it for years, it is completely safe. Recently alot of cedar trees have died on my property so I have had an abundance of the wood. It burns alot faster than oak so i mix the two for a longer lasting fire. Enjoy