Just checked in on this site - I didn't go with the lowest bidder. I checked Angie's List and the BBB. All excellent results.
So I guess maybe you should feel sorry for me. Your comment was offensive - I came to get an opinion from people that could help me speak more intelligently with my contractor. As you can see this experience has been nightmare.
I do feel sorry for you. In the construction business there are many people who don't know what they are doing. You found one of them.
In any case, I still think you should remove the old siding and reinstall the new.