You have to be aware that the cold stone/concrete walls of a basement literally 'suck' the heat out of any non-ducted heating plant. Many folks in the pellet heating world are disappointed when they install pellet stoves in their basements hoping the rising heat will make it to the first and second floor of their homes…
Insulating the walls would certainly help even with your present wood burner.
Rule of thumb… install the heater where you want the heat.
