A regular wood furnace would be your best bet, not to mention a much safer one.
As far as having hot not warm air come out of it, not a problem. Most have a stat on them that allows you to set the temp that the fans kick on and off at. I have mine set at 180 on and 90 off. At 90 the air is just warm at the registers when it first kicks on though it is hot.
With this setup I can get my house warm enough without the lp being turned on at all that I have to crack a window if I have the air controls set wide open.
It will keep the house comfortable (no less than 68 degrees) down to about 35 below without having to run the lp at all provided you are willing to load it up every four to six hours depending on the wood being burnt. Not to bad when you consider that most of the windows in this old house are single pane and the insulation isn't near what you would find in a newer home.
My furnace is a Clayton 1600 g. Not the best one out there but it gets the job done. I think I payed about 1200 for it brand new if I remember correctly, however I see used wood furnaces all the time on craigslist in the two to five hundred dollar range.
When it comes right down to it, it gets a heck of alot colder here for longer periods of time than you will ever see in MA. If a wood furnace keeps my old house warm in the dead of winter then it will certainly keep yours warm as well.
Watch this vid. It will give you an idea of just how much power water can have under pressure. Do yourself, your family and any close neighbors a favor and rethink your plan.
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