Thanks - we're not going to touch it (wouldn't know where to start anyway), we just need to get our heads round it before we call anyone in. How can I find a registered person who's qualified to deal with this type of job - what do I need to ask them?
Just ask if they've got the Unvented Hot Water Storage Systems qualifications. They will have a credit-card sized ID with a photo and number on it, usually issued by the CITB or Institute of Plumbing. NO card, no job. Don't be fobbed off with 'I forgot it' bull.
I'd suggest you get the installation instructions from the manufacturer first, this will show you what is wrong. It is easier than self-assembley furniture, albeit with a bit of pipe cutting, but an astonishing number are installed incorrectly.
The main issue is the cold supply, presently installed after the combination valve. This is usually connected to a port on the combination valve, which comes with this port capped off. It has been connected in the wrong place, causing back-flow from the expansion vessel & tainting of the water, as you have noticed. The other issue will be that any cold water outlets before the combination valve (upstairs?) will be at a higher pressure than the hot supply; this often causes problems with showers.
You also need to check;
1) the correct 2-port Danfoss valve (normally-closed, spring-return; supplied as a part of the water heater) has been installed on the heating system's flow pipe; a 3-port is NOT acceptable.
2) The wiring is correct.
3) The D2 discharge pipe from the tundish is correctly sized, it is correctly terminated and the valves can discharge full-bore without causing a flood.
4) The Local Authority should have been notified of the Installation; a registered installer should be able to complete the form certifying that it has been installed correctly. They may other wise charge you to inspect and certify it (don't know, never done it that way).
5) Confirm the expansion vessel is suitable for potable hot water; there's a label on it.
6) The expansion vessel may have failed, so you need to get it tested and the air-charge topped up if necessary. You need to isolate and partially drain the heater to do this.
7) All the bits listed in the installation instructions have been fitted ( I cannot see a control thermostat for the heating system, but I do see an unconnected fitting which may be an immersion pocket for a thermostat).
7) The rest of the installation needs to be checked over.
You may be able to recover the costs of this from the original installer, since it should have been included in his work.