Re: Leaking somewhere but where?
from the sounds of things, water is getting behind the siding and not able to get out properly... my first impression is that the windows arent flashed properly or there isn't any tar paper behind the siding.
typically when paint blisters off of wood siding its do to 2 reasons, the siding wasnt completely dry when the paint was applied and the water wants to get out through the face of the siding. or no air space between the siding and the exterior wall
having a proper rain screen under the siding allows not only for water that gets behind the siding to drain down and out of thw wall but lets the siding dry out on the back side and the face.. having the siding hard to the wall doesnt let this happen
fire up the saw and make some dust