I have done this also and went with a Forced Hot Air propane system for 2 main reasons. I chose forced hot air because I wanted the ability to turn the heat off when I want to (Or when mother nature decides to) and not have to worry about frozen heating pipes. It also heats the house faster - so the house heats up faster after turning it way down or off when I'm not there.
Oil heat has a hidden cost and that is regular maintenance visits - ever year or so @ $75-$125. Skip these and it won't be long before your efficiency drops off and then you'll have ignition problems. (been there - had all that)
I also agree with the smell issue. FHA oil does tend to smell a bit. There's also the issue of finding a place in your basement for the oil tank. Its possible to put them outside, but its not really a good idea because the fuel suffers from the moisture.
Propane furnaces require VERY little maintenance and are also CHEAPER!
Ken
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