Get rid of the side arm. Here is how mine is hooked up. Inlet line come into the house goes to the furnace then thru the plate heater and back to the tank on the OWB it is all run using one pump and and no thermostat. You guys are making an easy system to complicated, I never run out of hot water and the pilot light is shut off on my water heater, I am using the tank as storage for hot water. One word of caution you may have to install a mixing valve as the water in the water heater is the same temp as the line temp. I wash all my equipment with a line hooked up outside and have yet to run out of hot water. I have used 140 degree water to wash grease and oil off and you can use higher temp if needed by turning your furnace temp higher, but be careful when you do. If you guys are getting your info from your dealer I would look for another dealer because he is trying to sell you stuff you don't need. Remember KEEP IT SIMPLE less electronics means less dollars put out by you and less headaches later down the line.