I would check all fuel lines, connections, and watch how long it takes to ignite. Kerosene heaters should atomize fuel meaning it should look like a fog not droplets, so that would point to fuel nozzle problems. That being said it should exhaust out side not in to the house, inspect the burning chamber real good for cracks or leakage? If this unit has a flue or damper make sure it has a good draft to exhaust the burnt fuel. This is purely speculation not a solution, these are things I would be looking for if it were in my home. Good luck
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