Hi Cadallante87, welcome to the forum!
How's your tankless water heater working out for ya? Is it electric or fuel? We're looking into getting one too, so give us your opinions freely!
I like Glenn's idea of going for radiant heat. We're also considering that...we're in a 975sqft Bungalow. It would be nice to get rid of the furnace altogether and have the home heated by hot water supply. Especially since fuel costs are on the rise and from what I understand radiant floor heat is far more efficient than a furnace. Of course, there is the upfront cost of a change-over to consider.
Here's a site with good info on "underfloor hydronic heating"
Good luck, and let us know what you decide!