"The water heater should be able to completely recover in well under 30 minutes. As an experiment, try turning the heating system off or way down and leaving it that way for 30 minutes. You should then have plenty of hot water at all taps. If you don't, tell us the temperature of the water at the taps and at the tank" First let me say that this is a 40 gallon system, as was the old one. Apollo Direct Vent Water Heater Model#A640YBDSL Serial#S0805F000250. I tried the above test, turn heater off for around 40 minutes then when to each water source. Results Kitchen Sink temperature was mid 90's, same with the bathroom sink (both downstairs, same floor as Water Heater), then went to the upstairs bathroom, sink was mid 90's and the shower almost hit 100. The heat was set a 70 degrees (which I know is warm, but the wife wins), but it is comfortable in the townhouse. Im so frustrated with this system. Should I just remove the mixing valve, its set at the hightest setting? Once again thanks to everyone for their input.