Mike,

Sounds like you really need to do some up-dating. A little styrofoam in the air return would be like putting a Band-Aid on a decapitation. It's a lost cause.

What you need is whole-house insulation and a new heating system. Your exisiting nearly 80-year-old furnace is probably sending more heat up the flue than you're getting into your living space.

First thing to do is check with your utility company to see if there are any rebates available for adding insulation, replacing windows, or updating your antique heating plant and ductwork.

Then get an analysis to find out where you'll get the most immediate bang for your buck. Insulation may be the best bet, but your old furnace (and ducting) is probably so inefficient, that it might be your most urgent consideration.

From what you've described, no matter what you do, it will probably repay your investment in the very near future. I'm glad I don't have your heating bill.

Get a building analyst to inspect your home and do a Blower Door test. This will tell you how much and where air is leaking into your home. He will also be able to recommend where air sealing and insulation will give you the best bang for your buck. I would also recommend he do a Duct Blaster test. This will let you know how leaky the duct system is and if the leaks are in the supply or return. A good system should leak no more than 10%.

To find a Building Analyst call Building Products Institute, Malta, NY. 518/899.2727

Your furnace needs up-dating. It most likely is less than 60% efficient. If you have the testing done prior to replacing the furnace, the furnace size will be smaller than your existing furnace.

Good luck,

Awesome, thanks for all the advice guys. Yeah I am planning on updating the furnace, not sure when. I was thinking the siding would be first since it's the entire exterior of the house and stick the backerboard behind the vinyl siding for insulation since there is nothing there at the moment. I know the furnace is well outdated and inefficient, so that's why I was trying to figure out how to stop it from running so much. To be somewhat warm, I have to keep the thermostat at 72 degrees. But yes, my heating bills are nuts. :)

So I am able to side my house for around $2500, and I am able to get a furnace installed for about $1700...so I wasn't sure which route to take (gotta love friends of the family)

Also, as a temp fix for my living room freezing problem - can I stick the styrofoam in there or will I blow up my furnace? :)

Air sealing your home is a science. Don't waste your money on what you think will help, get a professional opinion. He will help you determine where your dollars will be best spent.

I have a leaking cold air return. The furnace sits in an outside closet off of the balcony. It is a older gas furnace. The furnace sits 6" - 8" away from the wall between the living room and the closet. The seal between the wall and the furnace is made up of fiberglass insulation and some sort of white foam. Is that the proper insulation for a cold air return/furnace connection? How do I stop the outside air from coming inside through the cold air return? I hope the question is clear. If not please let me know.