you can tie them into the existing ductwork for the furnace but 2 pipes will need to go outside no matter what for exhaust air out and fresh air in
where is your mechanical room located compared to an exterior wall or attic space? how big is the mechancial room? is there space for one

Mech Room is in the center of the house in the basement. Room is a bit tight but there is room to expand it.

Cheers,
Vic

any links to the rebate program? Can the homeowner install themselves and still get the rebate?

Im pretty sure you need receipt from a company.

Federal rebate:
basicly you get a Eco test on your home.After that you will receive a list of upgrades that can improve the efficiency of your home.you get up to $5000

ie:HRV, high efficiency furnace, tankless watertank, low flush toilets...
+
you can combine Provincial rebates for the cost of the Eco test , furnace water heater ......

If you have any questions shoot me a pm ill be happy to help.
or you can check out my website HighTemp.ca under promotions near the bottom there's a couple links to the rebates.

Might be a stupid question but what does HRV stand for?

Not a stupid question at all. Lots of people don't know what HRV (Heat Recovery Ventilation) units are.

Why do you think dehumidifying risks your tanks? What threat to your tanks is there?

I use a dehumidifier. It doesn't run much in the spring/summer/fall when I can open windows, but it has started running now and will up until May or so. We will be moving in the spring, and plan to install an HRV. Dehumidifiers are expensive to run (electricity), and put off heat when they run as well (not a bad thing in the winter).

Yes HEAT recovery......that is why they are good for the winter but are not much more efficient than just plain exhausting air in the summer when the AC is on. Also realize that a dehumidifier is more efficient in a warmer environment and less efficient in a cold one..... For these reasons a dehumidifier trumps HRV in the summer and an HRV is best in the winter months. Also if I just used the HRV in the summer I would be bringing in the warm and humid summer air....going against what I'm trying to accomplish. I had this conversation with the guy who owns a HVAC company (installed my HRV) and this is what he explained to me. I researched it myself on the net and came up with the same conclusion.

The only down side to running a dehumidifier in the summer is that they add heat ...but its the best option. The AC will also help to take humidity out.

Here's my issue, in my bedroom and the kids we have blinds that fit close to the window that we roll down at night to keep the rooms dark. Now finding that with the outside temperature getting to freezing and below that in the morning when we roll the blinds up, there's condensation on the windows. Also will find if really cold out and say I'm boiling a big pot of pasta and forget to turn on the kitchen fan, might get condensation on some of the other windows. The bedroom windows will normally be dry in the afternoon if not wiped and other windows usually stay clear.

Would a HRV stop the condensation?

Maybe.

I have the same problem, and I have an HRV. The window coverings we use add to the R factor which keeps warm air on the inside and the air that gets trapped between the window and the blinds, all 1" of it or whatever, cools down and the humidity condenses on the glass.

With the HRV, they dry out quickly, but with the blinds down, the HRV can't do anything about the glass itself.

I'm the last one up so I just roll my blinds up before I go to bed.