My hot water is not soo hot for some reason.
I went to look at the hot water heater and noticed that the exhuast pipe( in the pic) is VERY hot. - is this normal?
They can get very hot. Normal would depend on your system and flute type. Generally the lower efficient systems get hotter. I know that some systems can get hot enough that you can't touch them. If you concerned, get a plumber to check it out.
As far as the no hot water, is it everywhere? Sinks? Shower? How old is the unit? What temp is it set at? How long has this been going on?