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You can Google up "furnace confined space" and find lots more discussion of this issue.

Sure. Or you can read Section 304 of the International Fuel Gas Code. Specifically 304.5 dealing with indoor combustion air requirements. It probably won't help you figure this out yourself because you probably won't have any idea what the Air Infiltration Rate of your home is, but it will give you a starting point in your discussions with a service tech, such that you will be able to know if he knows what he's talking about or not.

Don't know that this code is adopted in your area, but whatever code is in use probably has very similar minimum requirements anyway. The following link has the text and illustrations:

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