I was right about the valve.

I just tinkered with it and got it reset to a level that is scalding hot like the old one was. If I feel like it I can boil myself like a lobster I can go downstairs and reset the heater to about .0001 degree below blistering.

Setting the heater to that temperature will insure I don't scald myself. It will be MY PERSONAL safety, as set by me and NOT some manufacturer trying to prevent a lawsuit.

That will enable the shower to be able to accomplish its mission and save energy without being a slave to the ass covering of the manufacturers and/or the government.

After I reset the valve the test was that when I set it to hot that the volume of water decreased substantially. This told me that the cold wasn't being fed into the outlet (spout and/or shower) as much as it had been. 

I'm in business. It now works as good as the old one.

One of the distinct advantages to a tankless heater is you can take a long shower without having to reset the heat as the temperature in the hot water heater tank drops. If I set it to a setting it will hold the setting a lot better.

To find out why the blog is pink just cut and paste this: http://piccoloshash.blogspot.com/2009/12/my-feminine-side-blog-stays-pink.html NO ANIMALS WERE HARMED IN THE WRITING OF TODAY'S ESSAY