I also have an old house with the same problems. The worst part I encountered was getting the upper sash freed up. The house was apartments for about 50 yrs and received many coats of paint. In places the exterior paint on the windows was 1/8" to 3/16" deep. I ended up using an electric heat gun (about $30) and a scrapper to loosen up the frozen windows from the outside. Just remember lead paint hazards and keep a fire extinguisher handy. Also don't get the heat too close to the glass or it will crack. A good pair of leather gloves also prevents numerous burns.
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