First off do you have the correct size 1 and 1/16 inch socket?
Channel locks or vice grips will destroy your anode or damage your heater.
After you Teflon tape (or Teflon paste) your threads, install the anode so it is water tight.
Set your valves correctly for normal operation; not bypass.
Turn on the water and open the pressure relief valve. Air should start hissing out of the heater as it fills. When water comes out; close the pressure relief valve. Water should stop dripping. (If it leaks after it is reseated, you will need a new valve.)
Open the hot water faucets and let the water run till it is NOT PINK and stops spitting. Then you can turn on the heat.
Lou and Laura with Bella - German Short Hair Pointer
2008 GMC Sierra 2500HD Crewcab SB Allison Duramax
2010 Flagstaff 8526RLWS - Superglide 3300
HAM CALLSIGN - KC3FFW