Thanks to all the pro's who are looking at my blog today and offering their feedback!! It's greatly appreciated and really gives us a lot of piece of mind!! Kyle introducing us to the Yahoo! group "SB-r-us" was a gift from the kamisama's (dieties). Thank you, Kyle!!
Now, I've added three pictures below. The first one is from last July when the frame of Square One was finished. You can see the joists between the middle beam and 2nd floor (where a window went right above that).
above: This picture is the 2nd floor next to the window and caulking area where we think the problem is. This morning, we had a very small puddle of water coming out from that 2x4 next to the window.
below: As you can see, the walls are already drying up very fast (less than 3 hours since we posted the pictures below) on the outside after the sun came up and the wind continues to air dry the walls.