Alan Kay proposed the idea of overlapping windows in his 1969 doctoral thesis, and overlapping windows first appeared in 1974 in his Smalltalk system at Xerox PARC, and soon afterward in the InterLisp system.
When I first began work in 1969 on what was to become DWIM, the automatic error correction facility of Interlisp, by implementing a primitive spelling corrector which would automatically correct a certain class of user spelling errors, I discussed this project at length with a colleague over a period of months. One day soon after this facility was finally completed and installed in our Lisp system, this same colleague rushed to my office and in great excitement exclaimed that the system had corrected an error. I was surprised at his enthusiasm. since we had been discussing this system for months. He replied. "Yes, but it really did it!"