This was filmed in 2011 (it’s quite a bit unstable filming), in a neighborhood in Wake Forest, NC. The manufacturer recommendation previously was to blind nail the lap siding, and to space the siding butt joints about 1/8″ apart. This is the result–broken caulk joints!
Current manufacturer recommendations (as of early 2016) recommend blind nailing still, but the siding should be butted tight at any joints, with flashing behind each butt joint. These new recommendations are likely a direct result of the type of problems that you can see on this house. We’ve seen this problem in many houses with the installation done this way.