Hi,
We are writing from NZ, where it is mid winter. We have the older model of this in our house
http://www.wagenerstoves.co.nz/butler-multi-hot-water-heater (it doesn't have the round vent at the bottom of the door, but has the same door and window. We use it for warmth and for heating the hot water. We also throw a mattress on the floor and sleep in the lounge room. (The fire has fire bricks inside and throw out heat for much of the night).
No matter what time we light the fire, I fine that it is fine when burning hot, but when it dies down to the last coals, I have a tight chest, and a strong burning feeling in my lungs. (I usually wake to find this around 2am, but it can be during the day if we light a morning fire). We have a portable air filter, but it still takes a while to take effect and clear the air.
Last year we changed the rope round the door with some good effect. This year I have checked it and turned it, and it still seems fine. We have not changed the narrow one around the window, but I am hesitant to touch that. The bolt on the door handle will also easily loosen, which loosens the door seal. The "when we can afford it" plan is to have radiators running from the fireplace into the bedrooms. We will keep trying to fix the seal, but I am wondering about the whole air-flow thing. Is there something we can do to stop the back-draft later at night? Is this pretty usual for fires to have smoke come backwards as the fire cools? Is it a problem in the fire place air-flow, or the draft of the room itself?