Snap a chalk line 1/2 inch below the top of the concrete foundation wall, parallel to the bottom of the siding and extending the entire length of the wall from side to side.
Loosen the bottom piece of siding with a nail bar. If there is a starter strip beneath the bottom piece of siding, loosen it as well by slipping the flat end of the nail bar under the siding or starter strip and prying upward carefully. Pry the siding or starter strip no more than 1/4 inch away from the wall.
Slip a 6-foot strip of 3-inch flashing under the loosened siding or starter strip. Work the flashing upward until the bottom of the flashing is even with the chalk line.
Ask an assistant to hold the flashing steady while you nail the siding back in place, using 8d galvanized siding nails spaced 16 inches apart. Drive the nails about 3/4 inch up from the bottom of the siding.
Tap siding nails back into place. When you loosened the siding with the nail bar, it might have pulled some of the nails out slightly. When you push the siding back into place, the nail heads might still extend.
Repeat the process around the rest of the house, overlapping each strip of flashing about 2 inches over the previously installed strip.