My grandfather recently replaced his hot water heater temperature valve in his basement and forgot to label the wires and has one "leftover". He asked me to take a look at it even though I only worked a little while with electricity a few years ago. I think it would be a pretty simple fix, however I would like to be 100% sure about it. Included are some photographs where I have labeled the terminals as they are on the device. My grandfather isn't 100% sure, but he thinks the "Leftover" Blue wire was connected to "4 T" terminal on second picture (while the black wire going into "2" was connected to the "2 T" terminal). I was thinking that the "Leftover" Blue wire (which is coming from the top of the heater, by the way) is supposed to be connected to the "4" terminal. Is this correct? I hope this isn't too confusing! Thanks in advanced.

http://i137.photobucket.com/albums/q210/irrumate/First.jpg
This first picture is of the new device (the leftover wire is the blue one in the top left)

http://i137.photobucket.com/albums/q210/irrumate/Second.jpg
This second picture is of the unit he had taken out.