Hello: I think I smell two problems here. 😛 First, you should never remove the anode to get rid of odor, or you wind up with a failed heater. The fix for this is to install a powered anode. The sediment at the taps could be a problem with plumbing. Do you have a recirculation line? If so, that could be where the sediment you see is coming from. We can tell you how to fix the plumbing so it does not let sediment out of the heater.