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Prepare the wall by removing any trim around doors or windows. Turn off the power and remove all outlet covers.
The installation itself is very similar to installing hardwood floors in that the wood is all tongue-and-groove. Place the first board, and use a level and any wood jambs necessary to make sure it's straight. It is most likely that the piece will not be parallel to the ground, but having it level will pay off when you're working on the rest of the wall. Mark with a chalk line.
Use 2-1/2" nails to nail through the tongue at a 45-degree angle all the way down, double checking as you go to make sure it is level. Make a cut and then stagger the joints. If all the joints line up, they create a weak point in the wall, so staggering them creates stability.
Continue with the rest of the siding right up the wall, sliding the tongues into the grooves and then securing with the nailer. When you come to an outlet, mark it and cut new pieces that go around them. When the wall is completely covered, reattach any outlet covers and trim.