Scott,

I don't own a tankless yet, but probably will before the year is out.

These are on-demand heaters.  Technically, you can't run out of hot water. 
Once they come up to temp, which they do pretty quickly, they will keep 
supplying water at that temp until you run out of gas.  *GRIN*

The caveat is capacity though.  If you get a smaller unit and try to run 
say two showers, you may be drawing water through the system faster than 
it can heat it fully, so you will get water that isn't at it's max temp 
coming out of each shower, however, you could shower all day and still get 
that same lower temp water.

You can get larger units that can handle high enough flows to supply two 
showers, or a shower and washing machine.

They can save money because of two reasons.  First, a hot water tank keeps 
water hot all the time.  So, even while you are out at work all day, your 
hot water tank has to come on once in a while to compensate for the heat 
loss from the tank to the surroundings.  Granted, a lot of insolation 
around the tank can help here.  The tankless just heats water when you 
need it.

Secondly, since the tankless can supply hot water indefinitely, you don't 
need to heat the water quite as hot as you do with a hot water tank.  For 
example, with a hot water tank, when you take a shower, you mix some cold 
with some hot so you don't drain all the hot water from the tank as 
quickly.  With a tankless, you can set the temp lower and use less cold 
water in the mix without fear of running out of hot water.

Some of the units do not have a standing pilot so that also saves some 
money there.

The units can be expensive.  A smallish unit with a standing pilot I have 
seen for about 500 bucks, and without a pilot for about a grand.

that's what I know at this point in time.

Hope that helped.

-- 
Blue skies.
Dan Rossi
Carnegie Mellon University.
E-Mail: [EMAIL PROTECTED]
Tel:    (412) 268-9081


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