i was thinking of buying a kit from maybe norway or the usa and wondered if anyone has done this and weather its cost effective. do anyone know of any good web sites to purchase a log house from?

Be ready to pay more on insurance.

You have to find dead trees -- logs from insect plague. Felling trees will not be adequate and require a constant rebuilding. There should be kits available with the timber already squared and notched. ( I have only helped to build a vacation cabin for a friend in NM, and picked up on the general conversation ).

I haven't built one before, but one thing I do know. Make sure you have all of the additions you want added to it when you build it. They are hard to add onto from what I've heard.

Also, I think every couple of years you have to treat the outside of them.