I see a fan switch and rheostat on the wall and yet you don't mention it in your heating
It will take about a half of an hour to get it burning clean and steady. Put the knob between 2-3 and let fuel pool in the bottom of the heater chamber. It should only take a few tablespoons to get it lit. Light your paper wad and place it in the burn chamber. When the fuel starts burning it will be above the ring, in about 15-20 minutes the flames will drop below the ring and this is when you want to turn the assist fan onto the lowest setting and turn the fuel down to #1 setting.
After a few minutes it will start your "rocket" effect, be ready for it. Turn the fan on as high as you need to and wait a few minutes, it will settle down gradually and you can begin turning the fan back down again.
I believe the whole rocket thing is caused by excess fuel. Maybe someone more knowledgeable than me can help out here?
I have a Dickenson Bering stove unit and getting it running smoothly takes a little practice, but once you get it down you have a hell of a heater. The fishing
boats up north keep theirs running 24/7 for months at a time.
I've heard tell from some folks on CF that you can use alchohal in the pre heating
stage with good results. I believe they use an oil
can with a pump handle to deliver the fuel to the chamber.
Don't be to quick to dump your heater, play with if a bit more and let us know what happens.