Ok during my early years of plumbing I was always told to put the recirc pump at the bottom of the water heater were the drain is. I never got a real answer why I was doing this accept for it was the best way. Now thinking about it it really shouldnt matter at all if the pump is on the top or the bottom of the heater because of the cold inlet dip tube which no matter what the recirc water is gonna end up at the bottom of the heater....right?