ZDS, your manual is better than mine since it shows both configurations.. Good Deal.. I think you'll be happy once ya move the water heater out connection. You probably could carefully drill and tap a hole in the old pump housing/bracket (making it like the new one) to put both connections below the thermostat.. but you'd want to be really careful doing that.. It looks like you could do it in situ and use magnets to clean up afterwards?? Just thinking out loud.. Probably unnecessary.. I'd thought that someone had inadvertently reversed the positions of the switch and the WH outlet on your engine, but the book clearly shows that is where they intended it to be hooked up.. I dunno.. Happy Heating!