well, gas fired appliances that have soot building up soot relates directly to the gas / air mixture. a lot of the time it means that there is not enough oxegen to properly burn the gas. if the gas is burning properly it should be a nice blue flame, with maybe only the tips of the flame being orangeish.and yes this may pump your house with carbon monoxide......so now you know the symptom, the problem may be harder to diagnose
the first thing i would look for is combustion air...where is the unit getting oxegen? the second thing to check is how and where is it being vented...where is the burnt gas going? obstructions or the vent being too small might also cause this to happen.critters like to crawl into warm vent pipes, and this is a good place for them to die in also.
if you have a hot water heater in the same room thats gas fired and tied to the same vent it would usually show the same symptoms if these were true.
if your combustion air and venting is ok then it becomes a matter of internal components.this is a bit tricky to diagnose. for the most part a 20 year old furnace will consist of two major components for gas: a soloniod and a regulator. the soloniod is connected to a few saftey features like a thermocouple, maybe some louverd door to open the combustion chamber. if the soloniod is not opening all the way for some reason you may not be getting enough gas to feed the furnace properly. the regulater might be doing the same thing. the oraface may be clogged, or a spring stuck etc. maybe when the gas line was nicked some crap got in the supply and clogged something. or the line wasn't purged and there is other gasses in the gas companys supply.
regulators and soloniods should be fairly easy to replace and diagnose....but you never know. if its some other internal component( combustion chamber, sensors, logic board,etc) you might be SOL my friend.
i would look for symptoms in other appliances. maybe not just in your house but check with neighbors also. also its not unusual to have a 20 year old furnace die on you. there should be tonns of HVAC contractors willing to get in there and give your unit a check-up.keep an eye on them. if you have some monkey in there who just opend the cover and told you you need a new furnace be wary.have them give you a reason why its doing whatever its doing. a second opinion is also good. a new furnace can cost anywhere form $1000-$5000 installed (though they only cost $600-$1200 wholesale from a supply house depending on make/model)