and it left these mushy little chunks of white stuff on the basement floor around the drain. Is that something that is supposed to be in the water heater or just a byproduct of our crappy hard water?

It looks like chunks of rock salt, but mushes between my fingers. I tried to take a pic but all you could see was a wet floor.

I believe that is magnesium. Take some and throw it on a fire, just be careful if it is. It burns hot. If it'* not magnesium, it'* just other mineral deposits from the water.

im thinking crappy hard water :?

And if it were magnesium? Do I need to put more back in?

I'll let it dry and test it out.

It'* most probably lime deposits

Mine was full of lime/calcium/rust.

anything that comes out of the water heater other than water is not supposed to be there. these deposits if left in the water heater will short out the heater elements if left to accumulate.

It'* not an electric heater, so I'm not worried about it shorting. After it dried it still looked like rock salt, and crunches to a fine powder between my fingers.

It'* efflorescence--a powdery substance of minerals that are left behind when water evaporates.

Nothing to alarmed about.