Hello Tim and welcome to the forum!
A bit of a challenging layout but a small fan placed on the floor at the opposite end of the house blowing air towards the den along the corridor could help getting the heat distributed. The question is how well is your home insulated? And the ceiling height of the den versus the main part of the house may also be important. Not sure how well the upstairs bedrooms would do.
To recommend an insert we would need the dimensions of your fireplace (see e. g. here: (broken link removed to http://www.woodheat.com/how-to-measure/) ). In addition, how many sqft do you want to heat? Will the insert be supplemental or primary heating source? What is your budget? How tall is your flue? What are its inside dimensions?
Wood or pellet is a question of preference mostly. Pellets are convenient: Buy them, fill the hopper and have a pretty steady, usually thermostat regulated heat output for hours. Less messy, too. Wood will be cheaper in the long run especially if you cut your own but more work and more of a mess. The view of the fire will certainly be nicer with wood. Even a wood insert can be run without electricity during a power outage, a pellet stove not. I am not too familiar with pellet inserts but I think the maximum heat output would be higher with a large wood insert. I suggest also taking a look at the pellet forum here for recommendations.