I was at Sun Dog Building last summer for a cob
course, and he's got some really incredible
RMH stuff going on. You can probably find it either on his forum (
http://donkey32.proboards.com/) or somewhere here.
Anyway, his system for safely heating hot water is to heat an open container (can be covered to conserve heat, just NOT sealed) of water with the RMH. I think he was using industrial size pressure cookers (obviously with the lid not sealed), but you could probably use any large waterproof container that can take direct heat from the RMH. Then you have copper pipe from your water source (your hot water main) running into the open container, coiling around several times, and running out to your sink or shower or whatever. If I ever get my construction projects started, this is the system I plan on using. I think the most important thing is that the copper pipe can't be touching the bottom of the container. This ensures that the RMH is only directly heating the water in the open container, which can easily dissipate as it turns to steam.
The thing to be careful about here is that water turning to steam is extremely dangerous because it expands something like 1,000 times in volume. If you have a sealed container of water that you're boiling, you're essentially creating a bomb.
I think this system would work best in a RMH used for cooking, because you would be using the RMH more time during the day. I don't know if a one or two hour burn over the course of 24 hours would get you
enough hot water to use throughout the day.
Disclaimer: I'm by no means an expert, and you should do some serious research. I just saw this system last summer, and it resolved a series of theoretical problems I was having in my head about the eventual system I'll build.