OK - several key thoughts:
First, be sure to put masking tape on the Water Heater Switch on the Power Supply board in the OFF position. It might be handy to put a tape on the Water Pressure switch on the dash also after draining all the water.
Second, I found the instruction manual for my Seaward S700 which goes into great detail about a different winterizing technique which I will brieflly describe below. I'll be glad to FAX those winterizing pages to anyone who PMs me with their FAX number. It would take quite awhile to type all that myself.
Basically, the Seaward manual says to drain the main supply tank until you have a bit more water left than the water tank holds. So, a 6-7 gallon water heater would need 7-8 gallons of plain water in the supply tank TO WHICH YOU ADD SUFFICIENT POTABLE ANTIFREEZE. You then have to remove the drain plug on the water heater to remove the anode, if there is one, and replace that anode plug with a normal 3/4 inch pipe plug since any type of antifreeze will damage the magnesium anode. I don't think my tank has an anode, but I don't run antifreeze into the tank - I bypass it and drain it.
To continue with Seaward's technique, you then run the hot water out until you see the color of the antifreeze-mixed supply water coming thru the hot water taps, then stop. Then run the antifrozen (?) supply water thru the cold water lines/taps until the colored water comes thru. Then, they have you drain the hot water tank, open the pressure release valve and leave them open over the winter.
Although the Seaward manual specificallly states that the tank drain valve will fully empty the hot water heater tank, my experience in adding a bypass line, AFTER draining the tank with the provided drain valve, is that over a quart of water comes out of those removed lines as they are unhooked from the water heater tank. Maybe it is from non-tank areas, but that water certainly does have access to the tank if the lines are not disconnected and drained.
Third - After running all the supply water out. - To INSTALL YOUR OWN BYPASS: Looking at the side view from the open cabinet door you will see FOUR pipes coming out of the Heater Tank. The one on the lower left has a valve on it and an opaque white drain hose which drains the tank thru a thru-hull fitting overboard when the valve is open. The diagonally located UPPER RIGHT pipe has the Pressure Release Valve on it and the same type of opaque white drain hose which drains to the bilge (per Seaward instructions). You will need to open both of these valves to drain the tank and let air in. The Upper Left pipe is the COLD Water Intake and the Lower Right pipe is the HOT Water Outlet. Both of these have a 1/2 inch nylon barbed fitting over which their respective hoses are clamped.
All you have to do is to turn off the power, drain the tank by opening both valves, disconnect the two clamped hoses (Upper Left and Lower Right) and connect those two hoses that you removed together using about 13 inches of 1/2 inch hose with 1/2 inch double barbs or pieces of plastic 1/2 inch pipe clamped to each end of your 13" bypass hose.
I took a photo, but cannot get it uploaded for some reason.
AFTER DRAINING THE HEATER TANK AND CONNECTING YOUR 13" BYPASS, you pour a couple gallons of RV antifreeze into your supply tank and run it through all the shower and faucet tap lines until you see the antifreeze color run out. Bypassing the tank requires much less antifreeze than the other way and either way you are supposed to drain the tank and leave it open over the winter. DON'T FORGET TO TAPE THE WATER HEATER POWER SWITCH IN THE "OFF" POSITION. POWER TO A DRY TANK WILL RUIN IT!
In short... FOUR PIPES: OPEN THE TWO WITH VALVES AND CONNECT THE OTHER TWO. That is all there is to it!
For DE WINTERIZING the supply tank in the Spring, Seaward recommends 1 oz. of bleach for every 50 gallons of water.
As for winterizing the Wallas, if you use a highly refined fuel like Kleen Heet, there is less risk of "gelling" where a waxy substance is precipitated into the lines. I use my Wallas all winter long without changing the fuel from Kleen Heet and it starts in the coldest of weather. So far...
John