I have a propane heater, indoor safe. I really wanted to build an auto back up system that would run off a batteries but the cost has slowed the design down a bit. I personally live where there is a silly law about small gas motors and time used so a generator is not really an option. The thing to remember about generators is most proportional T-stats need to have pure seine wave power. Most generators are modified seine wave and will cause the units to 'stick' either off or open. I think Honda is the only pure seine wave generators around.
http://spyderrobotics.com/support/ups.html