You have an airlock from the hot water outlet that leaves the top of the cylinder. This horizontal pipe from the top of the cylinder should be at a slight upward direction until it joins the vertical hot water pipe.It should also be a minimum of 22mm diameter pipe.
If there is a slight downward dip in the horizontal pipe it will cause airlocking and that is why you do not have any water at your hot water taps. You will need to repipe the pipework from the cylinder.
Steve
May 2007