Insulating from the outside

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I'm about to start a similar project only the house was built in 1987. The kitchen is very cold in winter and after cutting a hole in the sheetrock I know why! The insulation was just put in, not stapled and not the width of the wall cavity which is 24 on center. Since we are residing the house anyway and the OSB is only half inch not thick enough to nail the siding to we're replacing it with 3/4 ply. We'll be using r23 Roxul and aquabar as a vapor barrier sealing as we go. I used this system in my garage walls and it's working very well, nice and toasty in winter, with the added benefit that insects and rodents hate Roxul! I've read a lot of bad things about using 6 mil poly as a vapor barrier. We're using NUCedar vertical pvc siding with the Homeslicker bonded to Typar housewrap. Have the same siding and housewrap on the south wall and it looks just like the day it was installed two years ago. The house is located in the Hudson valley.
 
Well at least you have done it once before. This is the first time I have taken on a project this large. You gotta learn some how. Didn't get much done today, got the second window on and the cover for the cellar done. We put the white flashing up so that when the siding goes up it is white between the bottom of the siding and the steel. We will be using the flashing tape that we used around the windows to cover the flashing lip.

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I don't know what the standards are there but here we install windows with this system, it allows condensation a way out from around the window.
[ame]http://www.youtube.com/watch?v=t2VOrk1MuWY[/ame]
Then you wouldn't seal the bottom of the window like you have.
 
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Do not seal the bottom edge of the flange.

The sill should be flashed but the nailing flange should terminate on top of that.
 
I took yesterday off,had some personal things to take of. Now the video I watched and what you are telling me about the bottom of the windows is the same, aside from that what I have looked up tells me to put flashing on. We have a light rain this morning so I will look into it further.
 
Well I have to,once again,thank you guys for bringing this to my attention,did some more looking this morning and,why I would think other wise,you all were right. So today I will be fixing my screw ups.
 
Just to keep adding to the confussion. We have plastic spacers that we put under the window 1/4 inch and 1/8 behind the lower flange, they are horseshoe shaped. Normally now that leaves use with 1/4" gap between the window frame and the wood framing. We don't insulated that anymore. they do a cord and caulk just around the inside edge giving any water condencing there a way to get out without ever hitting the wood. Cord comes in all sizes but is usually 1/4 or 3/8 round foam stuffed round the inside edge and sealed with a caulk that is made for this. The loss of insulation is no big deal as the window would be lucky to give an R5 anyway.
 
I saw that in one video, so I put some small shims behind it. I was going to ask about sealing the inside but you answered that one two. I haven't been getting to much done,kept having issues,then had to go back to work.
 
Still have not got to much more done,4 more ft up all the way down.pretty good start on the siding.

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He finally quit stealing stuff from me and went to lay down.
 
Flashing above windows and doors. Water does get behind vinyl siding and it is a good idea to get it out from around the window. the metal flashing slides in behind the house wrap. Notice how they have turned up the ends so the wind can't drive rain sideways. With a couple cute bends, they manage to fold it with out cutting the corner.

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It's been awhile since I have posted, it's been awhile since I have got anything done. We are getting closer,got the last window in, and all the corners set up, the f and j channel set for the soffit,will finish next wknd.

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