Proper written warning must include not only the hazard but the consequences of the failure to address the hazard and what those ramifications are: Danger! Immediate threat to life and health! Water heater is backdrafting high levels of carbon monoxide, which is a deadly poison and can kill in short order. Do NOT operate this appliance until the entire appliance and venting has been thoroughly inspected, tested including combustion analysis and the carbon monoxide and backdrafting issues resolved. If you simply state the water heater is backdrafting or that backdrafting carbon monoxide is a problem that needs to be addressed, most courts would probably tear you up as a failire to adequately warn. Keep in mind, while there were witnessess present who saw and heard you, it is what is in writing that counts most.
Bob Harper

After reviewing the report I agree with Bobs statement above. Although I feel I gave adequate warning in the report.( WH section with captioned pic, Safety issues section,Major concerns section) I wish I had added something on the lines of Bobs statement above. Learn something everyday.
I still do not know if I would be taking things apart as there is some old rusted parts in this area. I will have to think about that long and hard.

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Dave