Running - it's Cold Here!

Ok, so I have to come to terms with the face that I now live in New England. And it is cold here. It has ALREADY snowed. It rains, a lot.

While I am a little worried about my own ability to withstand the cold, I am also worried about the kiddies in the stroller. I have a feeling the little guy might be running with me a lot.

How am I going to run this winter?

1) Gear - What do I need? I have a long sleeved tech shirt, a fleece headband, long sleeve pants. Good enough for CA, probably not for MA. My coldest run? Santa to the Sea Half Marathon - 34 degrees. I was very, very cold. Clearly I needed better layers...so what do I need? Help!

2) Gym - one option is to join the local YMCA. They have a 1/4 mile indoor track. Would I not go insane running n a small circle endlessly? But it is not a treadmill, and it is inside, and it is warm. Warm. Did I mention it is inside? It is also only one block from my office. So odds are I could actually make it to the gym.

3) Tread Mill - this might actually be the cheapest option (no fancy outdoor gear, no gym membership). I might be able to get a used one on craigslist. I can run in my house, with my children safely ensconced in warmth. I could set up a tv, do some laundry while running...and I don't even have to walk a block...Any suggestions on what kind? Do I need a fancy one?

My little guy seems not to mind the cold - guess I need to learn from him!

What do you recommend? Will I die in the cold, run to boredom in the gym, monotony in the basement?