No matter what you choose to install, make sure to check the utility web site for rebates on the central heating and insulation. If you use SC Gas up there, they definitely have rebates. (There's even a rebate on small stuff like programmable thermostats.)
The manufacturers of whatever unit you decide on sometimes offer rebates on their sites also. And the state of California used to do this - not sure now with the budget mess.
Sometimes you have to hunt for the rebates, but it sure was worth it to me. When I installed a new AC/heater a few years ago - I found and got rebates from the manufacturer, the gas company, the electric company, and the state.