I realize that this is a slightly old thread but I stumbled across it in a search and since there is some mis-info on this thread I thought I should chime in for future searchers who happen to stumble across it too. This seems to be a frequent question.
- Grace specs the I&W to go under any metal drip edge.
- Henry EaveGuard doesn't say that I know of.
- Certainteed Winterguard specs it over the drip at the eaves and under at the rakes.
- Owens Corning Specs underlayment on top at eaves and on bottom at rakes
To my knowledge, Grace is the only company that specs the I&W type barrier to go under the drip edge. Indeed, the NRCA advises the drip-on-bottom method.
In my area (very cold snowy winters and desert summers) the inspectors will give you a really hard time about a drip-on-top install at the eaves, unless you also place another layer of underlayment over the I&W and the drip. This is because the 2009 IRC favors the underlayment on top method. Obviously, the IRC allows for either method, but if drip is installed on top at eaves, then the code requires an additional 4" wide strip of roof cement over the top edge of the drip. This point is often overlooked by those who advocate the drip-on-top method. In fact, it is my understanding that code officials preferred the drip-on-bottom method, but realized that in high-wind areas it was nice to have the mechanical fasteners of the drip edge to prevent wind from getting under at the eaves and peeling the entire roof off. They originally required the drip-on-top method to both have cement on top, and to also be bedded in cement, but they got rid of the second part. It should be noted that the Grace I&W install instruction details are against code in that they fail to require the 4" strip of roofing cement.
IMO, there is no problem applying the metal drip edge directly to the sheathing (which is also the NRCA recommendation). If condensation were a factor we would have wood rotting out at every nail head, and under every aluminum soffit. Indeed, a huge number of houses have aluminum wrapped sub-fascia with no condensation barrier between. The idea is that condensation forms on the humid side. The only way that this can happen underneath the drip edge is if somehow the water is already getting to the wood. Otherwise the wood side of the drip edge will never be the wet side in a properly vented roof.
The purpose of the drip edge is to prevent water that is running down the roof plane from subsequently running down the front of the fascia or wicking up underneath the end of the shingles, with or without a gutter. It does a great job of this. Much more so than simply overhanging the shingles.