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Check out Fish House Supply http://www.fishhousesupply.com/ they have several options for heating.
I used an old 30 gallon compressor tank and stood it up to save on space makes a great cook top and it is verry efficient!
A wood stove is worth sacrificing a little space.
The problem with pallets is that are often times made out of pine and the pine sap when burned creates creosote which collects in the chimney and that can catch fire.
Have used a few different types of heat . But always go back to wood . Nothing like being on the ice at night and hearing the snap and crackle of a fire . I can sit there for hours and just watch the flame . Keeps me warm - can cook on it - and there's always a pot of coffee on . I know it's a little extra work but I feel it just adds to the whole experience !