You do understand that you will never duplicate the service of the original windows. Your house was built without insulation so the windows were only a little cooler than the rest of the wall. The victorians also hung nice heavy drapes which somewhat stopped the warm moist air from getting to the window, so less condensation. The old windows also leaked alot and when the wood burning stove and coal burning furnace needed fire air, nice cool air was pulled in around the windows. Cool air is dryer and when is came in it would warm up a degree or two and absorb moisture along the way.
Your very best windows today may give you an R value of 5 and the furnace supplies nice warm moist air under the windows in most houses, condensation is almost gaurrenteed.
Newer windows have two problems, the seal in double sealed, fails over time, may or may not be solved now but the sealed unit itself can be changed without changing the frame.
The other problem is installation. Condensation and water leaks need to be planned for so water is given a way to get out. The new installation proceedure has some different names in different areas, we call it rainscreening which applies to the whole house.
http://www.chambers-house-build-it.com/INSTALL-WINDOWS.html
This is simular to what we do except we don't put the treated slats behind the flange and we are supplied with 1/8" thick plastic horse shoes to put behind the flange, allows water out and 1/4" plastic spacers under the window to keep it centered in the hole.
On the inside, no spay foam or insulation stuffed around the window as R value is zip anyway when you look at the loss the window itself has. Instead they tuck 1/4" foam cord just around the inside edge and caulk that.
On the outside now alot of the siding guys are using 1 1/2" stock for trim and cutting a rabit on the back of the outside edge to cover the edge of the siding, evan with vinyl they hide the J trim and looks great.
