This is a direct vent unit which has an odor problem. It has been replaced with once but still has the problem. Odor is similar to what one gets when a forced air furnace is turned on for the first time in the fall, except the odor is stronger and does not get better as the unit runs. The unit was "burned" in for 72 hours straight (gas set on high and the fan off to maximize the heat and try to burn off any bad stuff that was on the unit). They checked for leaks all over the unit and could not find any. Our house is only 5 years old and they said it probably was due to something coming out of the carpet/wall board/paint/varnish/flooring etc. However, I ran two ducts (4" diameter each) to an outside window and stuffed fiberglass insulation all around the unit to prevent any room air from being feed around the unit and into the room. Admittedly I probably have some leakage through the fiberglass, but I'll bet its no more than 10%. With at leats 90% of the air coming from outside the house we still get the odor.