What is causing the Carbon Monoxide is the logs. Try glass from www.Moderustic.com , no soot......The log people won't tell you that when the flames hit the logs, this is what creates the soot. With glass, no soot!

Hmmm. I don't know why someone would say that about an open fireplace and CO, unless you aren't able to vent it properly. Besides, in most jurisdictions you are required to install a carbon monoxide detector in new construction.
The fireplace above is very similar to this one, which is an open, vented fireplace: http://www.rasmussen.biz/logs/fireballs_main.htm
It must be vented straight up.

We have something called a B vent, and it does vent to the outside. It looks like this place is located in Los Angeles county, where we also are, so I will give them a call. Thanks.

Oops. I gave you the wrong link. That wasn't helpful at all!
This is the link to European Home (in MA): http://www.europeanhome.com/pages/products/gas-fireplaces/b-vent-fireplaces/milan-60-72.html

Sorry about that! the other link is to a great company, but not the one you need.

The fireplace in the original photo at the top is a Spark Modern Fires. It looks like the 6' ribbon one. For a direct vent, it runs about $15,000. Expensive.