After making the post on 1/17/10, the problem came back. I talked with customer service at Atwood (they were very helpful and patient even though my unit was long out of warranty). They were not surprised with the conditions that I was reporting.
Here is apparently what was happening - the water was getting TOO HOT creating a cutoff condition. This meant that the warning light came on with either electric or gas.
Customer service said it could be either the thermostat or the control module. Price for thermostat (less than $15), price for control module (over $125).
So I went ahead and changed the thermostat and everything has been working fine for a full week.