I have a house. When i bought it it was 40 years old and it came with the original windows. I want to replace my windows. So i can see outside as you can see it has the rectangular look. Is there any way to remodle my windows something cheap? Can i cut this type siding? Please help!! Go to my website and check out my window. http://community.webshots.com/user/deb789
Your siding looks like masonite siding, easily cut. Since there isn't really a close-up of the siding, look closely first and be sure it's long boards, NOT individual tiles with up and down grooves which would indicate asbestos siding.
If it's asbestos, sell they house. Asbestos removal can cost many, many thousands of dollars since it's a hazardous material. Doesn't really look like it in the photo, though.
Framing for new windows in a wood-framed house with masonite is an easy task. Just don't get all vinyl windows. Gardenwife had some good research last year when they got new windows. Go to her member page here, and check threads she started. If it's not there, drop her a Dmail. She'll be very helpful.