Be careful with that non-vented propane heater. We had one, and it put so much moisture into the air that the entire house got moldy. :(
We heat with wood with a vintage Godin Petite wood/coal stove. It heats our entire house (about 500-600 sq ft.) with no issues. My husband has permission from several people in the area to cut wood on their land, so the only money cost is the gas to run the chainsaw and haul it all back in the truck. The wood is from downed trees, so he's never cutting down new ones.
It's definitely not a method that you can just use mindlessly, though. My husband sets his alarm in the middle of the night to get back up and put wood on, and he has to haul a stack of wood into the house at least twice a day. Not to mention cutting, splitting, loading, unloading, and stacking.