OK, finally got all the water to drain out (whew!). I then found a youtube video that shows how to make a kit for a wet/dry vac to vacuum the sediment out of the bottom of the water heater. I improvised and purshased an adapter from Sears for my Sears wet/dry vac (pictures attached).

I then purchased some clear hose and fed it into the end of the attachment. The hose came from Ace hardware and fits perfectly! I then turned the cold water supply on and off for a few seconds then vacuumed sediment using the clear hose attached to the vacuum cleaner. I used an extra long screw driver I bought from Harbor Freight (came in a set of two) for $5.00 to help break up the sediment.

I believe I got most of the crud/sediment out using this method. Next, I installed a new ball valve using pipe joint compound and plumber's tape. Then, I turned the cold water supply on and let it fill up.

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