Originally posted by: boomerang
Your neighbor is correct.
However, if you've never had the problem before, running a lot of water through the hot water heater may eventually get rid of the smell. In your case it occurred because the water was sitting stagnant.
I've got well water and a softener and I removed the rod in my tank. The softener removes a lot of the nasties that lead to corrosion in the tank anyway, so removing the rod is not necessarily detrimental to the hot water heater.
You actually cut off the rod with a hacksaw. Drain the level of the tank down a little, remove the rod from the top of the tank, saw it off and thread in what's left.
They can be EXTREMELY tight. It took two of us and a very long pipe wrench with a pipe on the handle to get mine out. We both held the tank from turning and worked the pipe wrench at the same time. We didn't think it was going to come loose but it did. Very, very tight.
Edit: Oh wait, October and it still smells? Remove the rod.