Layer the wall studs of the house with a tar-based felt paper before you install the plywood siding so a moisture barrier is in place. All wood will eventually allow moisture to seep through, and the felt paper helps this from going beyond the layer of paper. Cut it down into strips with the utility knife and staple it along the wall studs with the hammer tacker. Lap the upper pieces over the lower so any water will flow down from one sheet to the next.
Pick a starting point on the bottom of the wall and maneuver a piece of the plywood sheeting in place. Have your partner help you hold the piece in place while you use the level to level and plumb the plywood sheet. After the plywood sheet is level, mount the piece by drilling it along the vertical studs of the house. Set the screws every few inches up the studs.
Maneuver your second piece of plywood sheeting in place alongside the first piece. Apply a layer of adhesive where the edges of the two pieces match up and plumb and level the second piece. Screw it into place in a similar fashion, and work your way around the bottom perimeter of your wall using the same process for each subsequent piece.
Install a row of Z-flashing on top of the first row of sheets before you install your second row. Mount the Z-flashing in place with the construction adhesive, and then use the same process as with the first row of panels to mount the second row on top of the first. Keep at least a quarter-inch gap between the first row and the second row, with the flashing covering the gap between. Repeat the flashing and gap space for each subsequent row on top of the next.