A typical dry rot job: Purchase required city or county permit. Remove siding, and necessary trim. Inspect all wall studs for dry rot damage. Install nail guards where beneficial. Shim wall studs as needed. Install new Tyvek moisture barrier covering all exposed area. Install peel and stick flashing on all exterior windows. Pre-primer all cut ends of trim, and edges of lap siding to help prevent future dry rot. Install new siding using hot dipped galvanized ring shank nails. Install new trim where needed. Caulk repaired areas where beneficial. Haul away all rubbish.