The overly high water pressure in the pipes didn't help. The pressure regulator was not working. Why? We replaced it and the corroded gate valve next to it. The gate valve was 'rotten' and could have broken. It was really no longer a valve because it couldn't be turned. 
Now, 3 1/2 hours later, things look much better. The top of the new water heater looks like this:
And we have a new pressure regulator and an easy to reach, proper valve (yellow handle) just outside the house that can be used to turn off the water in an emergency. ~B
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