Cooling systems & water heaters
Mojo - I'd check with whoever sells/services your engine: you didn't specify what make it is in your post. The symptoms you described sound rather strange, almost as if the water heater is getting heat off the raw water side of the cooling system. This strikes me as odd, simply because the raw water flow would normally not be nearly as hot as the coolant circulating thru the engine and therefore your water heater wouldn't be as effective. In raw water cooled engines like mine the thermostat opens @ 130°F± and the engine shouldn't run much warmer than that, to prevent salt in the raw water from crystalizing & forming deposits in the cooling passages of the engine. In a "fresh water" cooled engine, the engine can run hotter as the coolant, an anti-freeze solution, contains corrosion inhibitors and no salt or minerals so salt crystalization isn't an issue. Diesels run better when they're hotter and a FWC engine can have an operating temp. in the 180-200°F range, while the raw water stays at a relatively cool temp. Your water heater is just another heat exchanger: the hot engine coolant is piped thru it and gives off heat to the domestic water in the heater tank. There should be no mixing of the two fluids. What I described is the most common set-up, but there may be other configurations that I'm not familiar with. By the way, make sure there's no air trapped in the engine coolant loop: this can cause engine overheating as the coolant can't circulate properly. Just like a car heater: you have to bleed the air out of the system for it to work.