Well after browsing the woodheat.org web page & their links to the canadian govt. on woodheat. It appears that the best place for a chimney is inside the house. Also appears that the worst setup you could have is an outdoor chimney!

After some some head scratching & measuring etc. It ain't gonna happen. It's either up the outside wall or no stove!

Seems that stoves / wood furnaces in the basement were the worst. This stove will be on the first floor. The chimney will be near the peak of the roof. The stove dealer didn't have any problem with the chimney being outside. It's OK if I have to crack a window to get a fire started, but other than that, I want a good system: no smoke in the house.

Anybody have an outside chimney? Will it work?