I have a Woodmaster and a plate exchanger also. Mine is hooked up like this, line coming from the furnace goes to the plate heater then to the furnace. Run your fresh water to the plate heater and then to the inlet of your water heater. I don't have tempering vale but if I was you I would add one because the water going into your water heater is just a few degrees cooler the the temp on your furnace. If I was to do it over I would use the return line to the heat exchanger instead of the inlet line from the furnace as the water is cooler Our water heater is shut off and we use use our furnace for hot water year around. We have been gone for 3 or 4 days at a time and have never run out of hot water and I don't have the convection tube on the water heater.