If I'm understanding you correctly, the answer is pretty apparent actually. Previously, you could make an iron furnace with either 8 iron (in the traditional furnace pattern), or cover a stone furnace with five iron.
Sounds like now, 8 iron is the standard either way.
I had this problem in 1337 but upgrading to 1337b fixed it. Are you sure your running 1337b?
edit: it even mentions in the changelog for 1337-1337b
Quote-Fixed Generator recipe
I had this problem in 1337 but upgrading to 1337b fixed it. Are you sure your running 1337b?
edit: it even mentions in the changelog for 1337-1337b
In 1.337 it was:
=RE Battery
Now it's the same as it was in 1.23, but requires 3 refined iron with the iron furnace, instead of 1.
At this point I'm assuming it's intended.
Now it's the same as it was in 1.23, but requires 3 refined iron with the iron furnace, instead of 1.
At this point I'm assuming it's intended.
Oh good, My whining finally payed off.
Using the iron furnace recipe, you get to use straight iron for the furnace, thus saving the energy to refine those 5 iron. That's still a win in my book, albeit a small one. 
That is probably where the cost equalizes itself - sure, that way costs 8 more stone, but you only need to refine 3 iron instead of all 8.
That is probably where the cost equalizes itself - sure, that way costs 8 more stone, but you only need to refine 3 iron instead of all 8.
Yea, and that's even better, since it equalizes, unlike before, where if you did it one way, You saved two iron (or wasted 2 iron the other way), and I do not think 5 smelts + 2 iron is worth 8 cobblestone.
I thought other recipe for generator was "Battery -> Machine Block -> Furnace"? Soooo.... either way you're going to be making a furnace. Unless you're talking about making the iron furnace out of 8 iron, in which case I have NO IDEA what you're talking about. 
Yes, you can make an iron furnace out of 8 iron (unless that recipe was just removed).
Because it was deleted, probably due to my constant whining on the subject, Icant link the post. Basically however, one path used two less iron than the other path. He changed the recipie costs however, so it all balances now, aside from a few bits of stone, and some furnace cycles, which are not major issues.
