Having handled a few general contracting jobs over the years, my resume goes back before vinyl siding but that would be another story. I would suggest that you cantact the siding manufacturer and get them involved.
I would bet the problem lies with a faulty installation of the siding / insulation board. The foil backed insulation should not be installed with the foil facing out when applied under vinyl siding. The foil should only be installed facing out under aluminum siding (or steel if it is still even available).
What the problem is, is the foil is reflecting the heat to the back of the siding. Vinyl siding will expand much more than aluminum siding. Even though you are in the clutches of winter, the direct rays of the afternoon sun will heat the wall enough to cause this.
Another thing, 1" nails may not be long enough given the situation you've stated if the asphalt siding is "insul-brick" or some like material, these materials are typically 3/4" to 1" thick. Due to the expansion of vinyl siding, you need to leave the nails loose, 1/4" or so and it is also important to nail in the center of the slots to prevent the siding from binding and causing the problem you're experiencing. Nails in the 2" range are more appropriate to insure adequate bite into the original wood siding.
I hope this helps.
FRANK
