The house originally had an oil furnace with hot water baseboards. We had to take out all of the baseboards to put up the new 2x6 walls so we decided to go ahead and update to a more efficient system, and get central AC to boot, so we installed a high efficiency propane system since natural gas isn't available on our street.
I'm hoping to use the blower in the winter to help circulate the hot air from the stove. The return duct is located directly at the top of the stairs where most of the heat tends to go (we found this out using a kerosene heater on a cold day). Our hope is that the hot hair is drawn into the return and then circulated to all of the other rooms.
I like pictures in threads so here's another, haha.
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That looks like a post-Civil War furnace to me. Seriously, that's a wonderful home you're creating.