run a hot water tap slow, if it eventually gets hot then its sludge, if it doesnt get hot and you need a really good flow of water through the tap before it even gets just a little warm then its the hot water flow switch diaphram. isolate the water and take off the four screws and remove it, if it has even a small hole in it (apart from the one in the middle) it wont work. Hope this helps.
dean
February 2009