Yeah. Does sound like a lazy draft. Weirdly enough, sometimes a short flu with a large diameter liner just won't pull hard enough to move air through a woodstove to make it go.
Old fart once said that the chimney is the engine that makes a woodstove or fireplace work. It's where it gets it's power. Not enough, or too much, and it won't work the way it should. The "mix" won't be right and you'll have trouble ranging from little to no fire, to too much fire, to backpuffing and smoke coming back into the house.
If the chimney is "just right" you can set a fire in a steel barrel and it will heat your house.
This will make your head spin and generate some conversation...
I'd have replaced the stove, as you did... or tried lining the chimney with the exact size of the minimum acceptable chimney flu size recommended in the VC manual that came with the stove. A smaller flu pipe will pull harder than a larger one on a short run or a long one, doesn't matter. I know, sounded stupid to me at first...
[quote author="grommal" date="1272550222"Well, in our case it was a short, exterior, uninsulated, masonry chimney. Exactly the recipe for NOT having overdrafting. Yet, we still had a completely unsolvable backpuffing issue with the old VC.