we have a wood stove installed in the finished half of the basement in our cape cod style house there are 2 small vents through the floor above the stove but really they only act as a return for cold air, the majority of the heat rises through the centrally located stairwell. we actually took the door off the hinges cause its always open.
We have managed to heat most of the house the entire winter season this year. granted the heat is not even. the basement will be a toastly 83 degrees, the main living level will be around 73 and the upstairs bedrooms will be around 63 (which is perfect for sleeping for me)
we do use our basement as our living room and spend most of the time down there though.
I would put the stove in the room you use the most.
Tons of good wood burning info can be found here:
http://www.hearth.com/econtent/index.php/forums/