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I would agree with chad-o on the horizontal nipples. They are much better, IMO. I use both vertical and horizontal nipples in my setup (one cross-beaked bird cannot drink from the h-nipples). The vertical ones don't leak when not in use but they DO leak when a bird is using them...leaks all over the ground and on the bird. No good having wet birds in -9F temps we had this winter! The horizontal ones don't leak, period, or maybe a drop on the ground occasionally, but the ground there is always dry vs always wet under the vertical nipples. Installation of the vertical nipples required an exact sized hole, teflon tape and a crescent wrench. The horizontal nipple installation requires a 3/8" or slightly smaller hole and self-seals via hand tightening without needing teflon tape. I also think it's a more natural position for a bird to drink. From what I can tell from your setup, I think your 5 gallon jug is too high and is probably giving you too much water pressure. Perhaps a flow restrictor would solve your issues if you are otherwise happy with your setup. Even a homemade restrictor...perhaps a yogurt lid with a small hole in it place under the spout of the water jug? You might have to caulk it in...be sure to use aquarium silicone so as not to poison the water. But like CC said, you might first check the nipple connections and make sure there is no debris or rough edges where they install into the pipe.
