Q:2 Water is too hot.
The main cause for this could be that the inlet water is preheated. Remember, only cold water should be passed through the heater as this unit does not recognize preheated water. The PowerStar Water Heater boosts inlet water temperature as water flows through it.
If still the water is too hot for use, you can lower the outlet temperature. You need to first position the selector screw to the LO setting. Remember to turn off power, and then remove the front cover. Next, loosen the selector screw and then slide all the way to LO setting. Don't forget to retighten, once you're done. Keep in mind, that the selector screw has to be positioned to either end of slot, not midway. Instead, if temperatures are too cool then it is best to put the screw back to the HI setting the same way you changed it to LO.
The rate of water flow also affects the outlet temperature so the greater it is, the less time the heater is capable of heating. You can increase the flow rate by cleaning the filter screen and the aerator screen at sink regularly. Make sure the inlet and outlet service valves are fully open. Try removing restrictors at faucet also, to increase flow rate.