You will do better buying a power vented water heater than installing a power vent kit; as a power vent has its own fan and motor as an integral part of the water heater, all warranteed.
A kit adds extra complication and is a completely different device with its own warranty that can void the warranty on the water heater.
I know it is a higher cost than the $550 water heater that vents out the roof, that is one clue that yours is not a power vent. It is much better to get an integral unit than to depend upon the skills of an installer to get yours to work with the new kit.
People are confused by the term 'direct vent.' It means different things to each. The two references below state two different things. People confuse 'power vent' and 'direct vent' as well.
"Generally, a direct vent must be next to an outside wall or be connected to a chimney that extends 2-4 feet above roof peak (all gases and fumes from the burner will vent naturally).
A power vent is used when the unit is put inside the home in a closet or on an interior wall. It must have venting to an outside wall and must have a blower fan to remove gases from the water heater so they don't back up into the house. " http://wiki.answers.com/Q/...direct_vent_water_heater...
"DIRECT VENT -- Method of venting appliance whereby all air for combustion is derived directly from the outside atmosphere and all flue gases are discharged directly to the outside atmosphere." http://hearth.com/what/glossary.html