Actually I just had to rewrite this. for a second time.
As for the carbon monoxide, search google. Use the quotes
"diesel heater" carbon monoxide
If you just search diesel and carbon monoxide it mostly returns diesel engines, which produce very little (0.4%) carbon monoxide under full load and about the exhaust is about 18% oxygen. The exhaust smell would be rather annoying, but no death.
A diesel heater, like any other heater, does produce enough carbon monoxide to kill. You will need a place for fresh air, such as an open window, and if the wind blows the exhaust back down the pipe and out the window, well you've got a problem.
Make sure to get a carbon monoxide detector or two.