1 yr old water heater and its already ugly! please look

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gsinc

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I just installed an electric water heater (brand GSW) a year and 4 months ago. Last week we stopped getting hot water due to the breaker blowing, I called over the electrician to trouble shoot and he said it was the lower element that went, So last night i tried replacing it but was sold the wrong element, as i was getting ready to change it, I shut power off, turned water off, drained tank and then pulled lower cover off and came across a rusty bottom. My question, is this normal, I have attached some pics of the lower and upper element hook ups and of the old element. I am going to store where it was purchased today to see if they have any advice on this, I just wanted some other unbias opionions with what i should do or if this is normal.

IMG-20110823-00273.jpgIMG-20110823-00274.jpgIMG-20110823-00275.jpg
 
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