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Insulating in the dug out areas will give you absolutely nothing as far as heat loss is concerned. Assuming the dug out areas are not directly exposed to the outside along a stem wall or something. Remember, insulation simply slows heat flow through conduction. Any additional energy that...

Boilers are designed for radiant heat and have radiant controls on them. They are more efficient and run at about 84%, at best, for non condensing units. But they are also a lot more expensive than water heaters. Water heaters, for a specific and relatively small area, like a garage, can work...

bigred, You really don't want ANY leak in the system at all. But, the drop in pressure you noticed might be at a joint at the manifold or other piping and not in the tubing itself. Air leaks far easier that water, so if it's just a leak at the threads, or something above ground, no problem...