Summary:The clapboard siding repair is necessary because of water damage to house's wood siding and subsequent wood rot that has begun to take place (figures A and B). Fortunately, only the layers--or courses--of siding closest to the foundation are affected.
To replace it, we need to remove the rotted sections, cut new cedar siding to replace it, nail it back in then prime and paint it. This is type of siding called lap siding because it does exactly that--each course laps over the course below. To make sure we don't damage any of the good siding, we opted to use a nail set to drive the nails completely through and just let the rotted boards below slide out.