I have a gas hot water heater which is currently set one click away from the hot setting. The other side is the very hot setting. I believe I have the right setting but the problem I have is that it takes a while for the hot water to reach the shower or sink in my two bathrooms. I need to run the water for some time before I feel the hot water. My house is on a hill and the location of the water heater is in the basement where the water must travel a some what longer distance then the average heater. I don't think this is the problem since I waste approximately two gallons of water or more before the hot water is felt. This water heater is self cleaning. Based on this information, can you tell me what the problem may be and what I need to do to correct it. Thank you

There probably isn't a problem, but adding a recirculating system can help. They can be retrofitted under the sink of the longest line. They can be temperature based and time enabled and contain a small pump. Here is a suggestion: Hot Water Circulator Recommended by Green Professionals (http://redytemp.com/)
Other suggestions have been made on this board.

A non-retrofit version involves running a pipe from the furthest tap to where the drain valve is on the water heater. The drain is duplicated. This typically doesn't require a pump.

To get better shower lifetime, a themostatic mixing valve at the shower will help. You will get in the shower sooner. Turning down the cold water supply (at the shut offs) to the shower will typically make it get hotter faster if it's a single control.

I agree with Kiss that a recirculating system is called for here. Will you be doing the work yourself? Regards, Tom