1. Will has it more or less right. Insulation is key in older houses. You might want to check the insulation anyway to make sure there is no asbestos. Kill two birds with one stone, right? Anyways, insulation, roofing, windows (double-pain, gas-filled), doors (large spaces along sides, top, bottom). How old is your furnace? Is it gas or electrically powered? Appliances? Are they energy-star compliant? If you have the real estate available to put up solar, it never hurts. It's not cheap to get into though. When TotalMILF and I get a house, one of my first big projects will be supplementing our home with solar (and maybe even a small wind turbine depending on our location).
2. Again, will has it exactly right. My mother-in-law has an early Prius, and it works great. The newer models are even better. I know you said a hybrid is out of the question, but have you looked at all hybrid options? Even Petro-CNG?
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The prospect of achieving a peace agreement with the extremist group of MILF is almost impossible...
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