Newbie Supreme wrote:
I appreciate the responses, but we just purchased the water heater seen in
the pics like a month ago. The one that was there before had been there
since '94, and the dip tube was disintigrating and clogging our faucets with
little plastic pieces. It's because of that recent purchase that I'm trying
to figure out how to resolve this without buying ANOTHER new water heater.

Thanks again.


OK.

Last ditch possibility:
http://www.fieldcontrols.com/venting.php

This is an add-on power venting device.
No chimney; vents thru outside wall.
Uses existing water heater.

Downside- may not be cheaper than a new heater.

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Alternate:
If you could move the existing heater to the
furnace area, why not punch a new hole into the
chimney used by the furnace, but higher up?

No matter what you do, there is going to be *some* significant expense.
It's a real tossup.

Jim