Well, after much decision and debate, here's what we have decided...........

As much as we would like to be responsible and save the planet, we still have to feed our children!

We just can't talk ourselves into putting in the on demand water heater when it will cost roughly $1,500 more than if we go with either electric or gas. Not only is the cost a huge deterrent, but the power venting system is troublesome, our home was built in 1970 and the pipes may not be up to snuff, and we have heard that since our ground water is so cold in the winter, we may only get our temperature up to 105 at best in the winter.

We have decided that it just isn't worth it at this point.

All of your opinions and knowledge helped a great deal, as we really didn't know too much about these heaters. You all brought up things that we hadn't considered.

The carpet is pulled up and we have a fan on it.

We are waiting for the plumber.

Thanks again! Mahalo!