The water heater is finished and ready to be used this spring. After this picture was taken, the line for the pressure relief valve was run through the floor and out the side of the house. The old sealant was also cleaned up on the flew about a foot down from the ceiling. After hooking everything up correctly, I had to drop the chimney down almost a foot from the roof down through the ceiling. That turned out to be a good thing, it was pretty tall.
I have attempted to put the drain system under pressure, but I have a leak somewhere. So I will have to fill it all with water in the spring to find the leak before I call for my plumbing inspection.