*SHOULD A HOUSE WRAP or INSULATION BOARD BE USED?
I recommend that a whole house wrap or rigid insul-board be applied to the exterior prior to the installation of vinyl siding. Because vinyl siding is not waterproof, the installation of a wrap or insulated board between the existing wall and the vinyl siding acts as an auxiliary moisture barrier. Although a wall of interlocked siding will shed most water away, the presence of a barrier underneath helps prevent any damage that may result from moisture trapped between the vinyl siding and exposed, "un-wrapped" walls.

Along with moisture prevention properties, a layer of weatherproofing such as a house wrap/insulation board also provides an added insulation value and helps shield the home's original exterior from exposure to wind, weather and dampness. It can also act as a sound barrier by buffering outside noise. Most wraps are compatible in thickness, however insulation board such as Foamular, a rigid extruded polystyrene , can provide an R-value of R-5 per inch of product thickness. The depth of space allowed by the method in which the siding is applied usually dictates the thickness of the insulation board used.
Remember, installing a weather barrier prior to siding is only a suggestion: your builder and local building codes should always be consulted when determining the proper method and materials for the installation of vinyl siding in your locale.
Vinyl siding is not waterproof, despite common misconceptions. Thanks to its overlapping profile, a standard interlocking wall of horizontal vinyl panels will effectively shed most rain and water away, providing superior water resistance. However, no vinyl siding is completely impervious to outside moisture from dampness rain or snow. For that reason, Norandex/Reynolds siding panels are manufactured with "weep holes" located at the bottom of each panel projection edge. These small but important outlets help channel away water that might find its way inside the siding wall through the panel seams and around moldings, windows, door and fixtures.

Weep holes also allow the infiltration of air, which also helps to dry out the inner surface of the siding while promoting evaporation of any remaining moisture. The application of house wrap and or insulation board also provides for a secondary defense against outside moisture that might penetrate the siding and come in contact with the original sheathing.
Vinyl siding is never "attached to the wall," rather it is "hung on the wall." The difference is what separates a professional installation from a problematic one. One of the inherent properties of Poly Vinyl Chloride(or PVC as it is more commonly referred to) is its thermal expansion properties. PVC expands as temperatures rise and contracts as temperatures fall. If you measure the expansion from one extreme to the other, you'll find that a typical siding panel expands/contracts at a rate of approximately ¼ inch for every 12-foot vinyl panel.
For that reason, expert installers will always hang siding in such a manner that allows for just the right amount of "looseness" or "play" to accommodate movement of the siding during thermal expansion. It is crucial that vinyl siding be cut, lapped and attached with fasteners at just the right depth and with the proper spacing and layout to insure the installation will look its best regardless of the outside temperature. Which is precisely why manufacturer's recommend that all vinyl siding installations be professionally hung by experienced, quality-conscious installation contractors. Your home deserves no less than a quality product and a professional installation.
**************************
PROBLEMS WITH J-CHANNEL:
When a new siding installation is installed into standard ‘J’ channeling, rain water is collected in the ‘J’ channel and some of that water is directed right under the siding and collected beneath it. The ‘J’ Channel is a way of hiding the expansion and contraction gaps at windows and doors. This method has been used for years with Aluminum and Steel Siding, but with the onset of Vinyl Siding, the leak issues have multiplied. All of the sidings that are installed into ‘J’ Channels leak because the channel forms a gutter that collects water. The wall becomes a water collector on the vertical during a rain event. The water rolls down to the protruding channels at the window and door heads and fills them to capacity. The overflow rolls down the vertical and behind the siding. Several measures have been taken, by the conscientious installers that realize this fact, to remedy the situation and to keep the water from damaging the home. Underlayments are the only way to temporarily ensure a dry wall, but these products break down and do not protect the home entirely, and in every case. The first real honesty in the industry came from the Vinyl Siding Institute, the VSI for short.
For an installation manual from the Vinyl Siding Institute: http://www.vinylsiding.org/publications/Installation_Manual_english.pdf
SEE VINYL SIDING DONE RIGHT ! in PDF format At: http://www.taunton.com/finehomebuilding/PDF/Free/021149082.pdf
***************************************************************