Side Windows on Bay Window Do NOT fully open

As we were investigating leak today, we tried to open windows and discovered that neither window opens more than 2" because the window hits the bottom of the roof over hang.

Here is a video

Videos of water leaking into room from BayWindow

2/2/2011 We woke up this morning to find a puddles of water on the bay window seat and in the living room.

Here are some videos of the leak in the bay Window -  

Water is probably be under bay window roof and is leaking into our living room.