Replacement windows are nowhere near as good as your old wood windows!!! Sure, they're easy to install and no maintenance. But they're ugly and overrated! I own a 1926 house that had its original windows intact. Rehabbing them is a very, very, very ardous task. Performing a proper mechanical restoration will make them function extremely well. I can raise and lower my sashes with barely the push of a pinky anywhere along the rails. There are many arguments about their energy efficiency . . . you can make your window EQUALLY energy efficient by adding a good quality storm window that has a very low air infiltration rating . . . now you have a large pocket of stagnant air between the storm pane and interior window pane. The absolute best insulators are (from best to worst) a vacuum, heavy gases, then stagnant air. Thickness of this pocket is your next best friend. Essentially the greater the thickness the more insulative the situation. Dont let anyone tell you otherwise, Im an engineer with pretty extensive knowledge in Heat Transfer. Tightening up the windows (essential in ensuring the air pocket remains stagnant) includes using spring bronze along the casing sides and adding sealing strips along the bottom rail of the bottom sash, along the meeting rails, and the top of the upper sash. Voila, windows are sealed quickly and easily!
Depending upon how detailed you wish to go regarding restoring the windows aesthetically decides how long and arduous the task. Personally, I save as much original glass as possible. If you have broken panes, replace them with glass! It is very inexpensive to have new panes cut. My 6-pane sashes cost about $4 per pane. You can use single or double thickness glass. I think single is fine for small panes but double is advisable for large ones. There are even resources for antique glass if you wish. Now, personally I stipped the windows to bear wood and brought the interiors back as stain-grade. The outsides I use an oil based primer (as the glazing compound is oil based) The glazing takes about a month to cure. By the way, working with glazing takes getting used to!!! Be sure to lubricate your puddy knife with linseed oil or the compound wont adhere properly!
Sorry to be so wordy

a couple last thoughts, (1) careful stripping old paint! Im starting to use a homemade steamer box check out:
http://www.oldewindowrestorer.com/steamcabinet.html
Its a GREAT resource for old window restoration. Finally, Ive found doing an initial homemade preservative application of 50/50 mineral spirits/linseed oil on ALL parts (sashes, casing, parting beads, etc) before priming works great! After priming, painting and staining everything I apply several coats of poly to each part and then apply a liberal coat of paste wax . . . LOTS and LOTS of work, but oh my gosh they look like a fine pieces of furniture upon completion!!! Hope this helps . . . and dont succumb to the replacement window insanity! Remember those old wood windows can last hundreds of years, life span of replacements hahaha!
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