[Greenbuilding] windows - flush vs recessed

[Kat]

Hi all,

I came across an article from 2009 that recommends installing recessed windows in super-cold climates (http://www.insulfoam.com/images/stories/docs/JLC-finalfeature.pdf).  I think it's an interesting idea and could see how it might be 
beneficial in some ways but wonder if the potential problems outweigh the benefits.  I'm not having much luck finding details on the web.  Everything I've found on BSC shows flush windows.

Any thoughts on or experience with recessed windows in a mild *rainy* climate (Portland, OR)?  Has this, by chance, been discussed before?

-Kat