Hi Dave
I have had a similar problem and even though it may not be the solution to your issue it may help. I checked the diagnostic fault finding flow chart and it indicated 2 areas, firstly the microswitch and secondly the diverter valve. I checked and found two issues, namely, at the end of the diverter valve under the plastic casing (the microswitch and cover) the round shouldered plastic actuator had broken in half and was in two pieces, this would mean it could not switch to hot water, secondly the microswitch was intermittent, jiggling the two wires around it could make it work. i suggest you try this area first, its exactly as the diagnostics suggest and doesn't involve whacking the boiler at the top right hand corner as some alternative forums have suggested!!
Good luck
Steve, January 2010