Sounds really cool to me! I hope you have a good backhoe, or else it could get expensive really quick!
I have to imagine that having an underground home, your envelope would be pretty much completely air-tight. You would still need a source of fresh air and exhaust, so you'd need an HRV/ERV. Due to the air tightness, your heating/cooling system would likely not be very big. So, if you went geothermal, your payback period would be very long. However, depending when you're doing this project, the federal tax credits are good at least through this year. If it's in the budget, geothermal (or GSHP for the purists), is definitely a more logical method of heat exchange, especially in areas that have extreme temps.
So is any of this house above ground? any windows? I'm picturing your front door as a submarine hatch
