Thanks for all the input, all the evidance is pointing to a manufactures defect. The contractor does not want to pay to replace the siding and an easy way out is to blame it on an electrical problem, so he is not responsibal. I am in Western Mass and the sun hits that side of the house around 2pm to sun set. This would be the southeast side of the house. The sun does not hit that side of the house directly it hits it at an angle for half of the day. I will post what the final out come of this problem is, I think I am in for a fight with the contractor and might have to take things to court. Thanks to all that resonded.