Have you verified that the baffle(s) are properly in place? Easy to knock out of place during install, or even just loading wood. Makes a big difference in the way it burns if the baffle is out of place.
Also sounds like your wood may not be optimally dry. Once the fire and secondary burn is well established, you should be able to cut the primary air back quite a bit (slowly, in stages) without snuffing the fire out. Once the primary air is cut back the stove pipe temp will drop, but the air temp coming out of the furnace will slowly go up.
As far as heating your house with a 850 CFM blower feeding a 8" pipe...it'll work...Kuuma uses one 8" pipe on their VF200...and only a 500CFM blower...rated to heat 3000 sq ft...which may be a bit optimistic, unless the house is well insulated...but it did fine with our 2400 ft last winter, on all but the coldest days....on those few days it needed a lil boost from the Drolet 1400i in the fireplace.
You'll get this sorted out...seems like there is always a steep learning curve when you get a new stove (furnace)
The only thing that worries me is that you said the old furnace was white from overheat...that is usually a sign that your draft is too high, or you are running too hard to overcome a large heat load.