Thermostats are fairly easy to install. However, before we get started, let's go through a basis safty check.
As a Maintainence Technician, when I do electrical installations I always trace the wiring. The reason I do this is because some time the colors of the wiring can show one thing and be another.
So this check is going to require for you to climb the attic (or whatever) and be sure there haven't been any wiring change. For example, one time when I was installing an outlet in the bathroom the wires to the vent was red; but when I looked into the cealing, the original from the vent was green.
Changes like this happen all the time, especially when someone installed or repaired the unit while you don't know it. So, trace the wire from the wall to the heating unit and make sure the color codes are correct.
The basic home or building electrical wiring is white or red (hot), black (neutral), and green or the exposed wire is the ground. By the picture you provided, you will not need this wire; the unit will automatically be grounded when you hook-up the black or neutral wire.
This seems to be your only trouble. However, if you need any additional assistance, please visit Honeywell's Technicals Call Wizard to guide you through wiring and troubleshooting your thermostat, as well as programming it to the most comfortable settings for you and your family.
Honeywell's Technicals Call Wizard
http://yourhome.honeywell.com/yourho...rd/Wizard.aspx
Hope this answers your question!
REFERENCE(S)
1. rpxlpx,
Exposed Copper Wire (Online: Bobvila.com, 2000)
http://www.bobvila.com/BBS/Exposed_c...l-1-T1390.html
2. From Wikipedia,
Electrical wiring (United States) (Online: The Wikipedia Foundation, Inc., 2006)
http://en.wikipedia.org/wiki/Electri...ing_%28U.S.%29
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