[ReelMagic]

I've attached a picture of the water heater on my 2003 38 Open in the normal position (not by-pass) and assume yours is the same. As stated in several replies if the tank was empty and you turned on the water heater circuit breaker (with no water in tank) you most likely burned out the heating coil.. As the water heater also circulates water from the starboard engine through the water heater when its running you should have hot water after running for a period of time at cruise RPM..

---

I took a longer look at your picture and it appears the supply water (blue hose) coming from the water source is wrong (or at least its different from mine)... My water supply (blue) goes to the bottom of the 3 way valve.. The bottom of your 3 way valve has NO blue hose connected to it..... It's possible your cold water supply is going to the wrong place on the tank