Hi Kathleen, figured I'd chime in with another two cents worth.
My set up: 1960 Single story Ranch well insulated, old windows and doors, basement 760 sq. ft., upstairs 1230 sq. ft.(only 1,000 heated.) Total heated space 1,760 ft ²
1980 Surdiac Gotha 513 wood/coal combo $80, on CL, into a basement utility chimney (heats up to 13,200 cubic feet with up to 44,000 btu) Small firebox is a downer though.
1936 Antique Atlanta Stoveworks #27 Box in fireplace, given to me by a fellow local 107 member/friend named "ICE", he's from Iceland. We burn this part time, to take the chill off the living room when temp gets to single digits outside.
2008-2009 winter heating cost $1,700 in heating oil to get the house up to 64-69 degrees
2009-2010 cost $260 for 100 gallons of oil to heat the hot water (it may last us a year?). Temp inside 76 °F right now.
Free wood, from ice storm, part time tree work and scrounging around.
Total spent on stoves: $80
Pipe connectors, thermometers, gaskets, seals: about $200
Free Magic Heat from another hearth.com member throws up to 30,000 btu (don't know if I like it yet)
Furnace has not been turned on to heat the house this year.
On the other hand, I know a guy who bought a brand new Harman pellet stove for $3000 (rated to heat 1,500 ft °F,) including installation in the basement and one ton of pellets. His bedroom is 60 °F when the stove is going and the heat barely rises because the stairwell is in the opposite corner from the stove. He wanted to hire me, to put another set of stairs to the basement, closer to the stove, but didn't have enough space to sacrifice when I measured. This is an extreme situation and would not happen to you with that cool fireplace!
I just wanted to tell you that a new stove is not always better than a nice used stove. I also wanted to apologize for my previous comments about the Englander Stoves. I did overgeneralize a bit.
Whatever you choose, go bigger, longer burn, less emissions and a big fireview door (this shouldn't be a problem with your budget.) Something that fits bigger logs if you're going to cut your own wood! Top loading is awesome!! Line the chimney and insulate the house as much as possible. It'll pay for itself no matter how you heat. Learn as much as you can about all your options. This site has a great amout of info. Good luck and burn soon