Hot Water Rust with Iron filter

[shed987]

I bought a Home 1 year ago that has its own well. There is a ton of Iron in the water where I live. The previous home owner had installed an Oxy-catalyic Iron filter. About 3 months into owning the house, the regen timer on the filter failed. (an old school 440 series mechanical timer) . We noticed it was broken about a month later and replaced it (Our water became progressively more rusty). After replacing the regen timer the cold water returned to normal; however, to this day the hot water remains rusty.

Since then I have flushed the tank monthly and the rust continues. I have tried to replace the Anode rod as well but I cannot remove it. I tried a 400 ft-lbs electric impact wrench and blow torch and the thing would not budge. The water heater is only 3 years old and im becoming increasingly frustrated. Has anyone experienced anything similar and found a solution?

[speedbump]

I'm familiar with the 440 timer, it goes to an Autotrol head, but I have no idea what an OXY-catalyic filter is. Most iron filters use Green Sand or MTM. MTM being the new kid on the block. If the cold water is clear, it's the same water that goes to the heater, so it must be something on the hot side that is releasing iron. Probably the heater itself, since it has a lot more area to collect iron that the actual plumbing does.

Run all the faucets; full blast at the same time, hot and cold for as long as you can stand it, and it should clear up.