Overall, sounds like an install issue ( possible). This is common when builders install windows.
The screens should be an easy fix. The frost on the inside could be due to a high humidity levels your hime believe it or not. At least excess condensation that can freeze early in the morning before the sun is in full swing.
This would not be a window issue.

I would agree sounds like installation as well and too high humidity in the house.

In the winter, our first job every morning was to use towels to wipe the condensation off our windows. Then I replaced the single pane, metal frame windows with double pane vinyl windows and the condensation totally disappeared.

Not one drop of condensation for over 5 years!

The condensation in your home could be from humidity coming in your windows.

Boobytales, to me it sounds like a combination of a builder grade window (despite the brand name), along with a questionable install.
Lastly, humidity will rarely come in through your windows ( unless you live in an extreme climate) , it will try to get out through your windows.

The locking issue is a big indicator that the windows were installed out of square, which could also be causing the screen to not fit properly.

Frost formation in the center of the fixed windows means that the IG unit has collapsed in the center and the airspace between the inner and outer glass lites is considerably narrower than it should be.

This is a manufacturing and a warranty issue and either you or your contractor or your window distributor needs to follow up to get it resolved.

+1 to all of the above. I'd get a Simonton rep out to take a look at everything. I have to agree with ultra that the locking issue is more likely due to poor install, however the glass issue is certainly a manufacturer issue as oberon mentioned. The condensation itself will have more to do with the relative humidity in the home and is not a "warranty" issue, however the location that it is forming is an indication of a problem.

This post was edited by HomeSealed on Tue, Jun 18, 13 at 11:09

Thanks for your responses. It sounds like these are legitimate issues. I think I'm going to call the builder and inform him of these 3 issues and have them come out to look at it.

Definitely and sooner rather than later!

You may find the humidity settles out as the house ages a little. Lots of moisture trapped in new building materials. Can take a while to fully dry out.

Mis-alignment, potentially failed glass, and out of square alignment are not issues that would be shown as a result of lumber drying over time.

I agree with you that the wood used in today's construction is nearly wet, but not enough to create these issues.