Hi Eric,
Thanks for all the info... and yes you are correct. That is the correct wiring diagram DADoES, I just opened the console to look at it. I took photos, but cannot post them until I get home.
I guess the water temp from the little 30 gal electric water heater isn't hot enough to cause the bi-metal switch to trigger, because I've never witnessed it turning off or cycling the valve solenoids.
Kevin