There is no doubt that incomplete combustion will produce carbon monoxide, and complete combustion will give you CO2. However, if you have good ventilation, you might get away with it. On the other hand, that is a relative term, and who knows what the limit is.
For my money, I go for the radiant heat option,
http://www.investigator563.com/forum/vi ... ?f=4&t=362, but you still have the CO2 problem. Plus the relatively large volume of the Top Hat makes it difficult to heat.
Looks like the solution is either spend thousands on a fancy diesel heater with a flue, or just warm the hot water bottle, and dive into a warm bunk, hopefully with a warm companion.