The type of wood sheathing panel for walls will depend on the use and interior or exterior application. 1/2″ CDX plywood
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or 7/16″ OSB
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are very commonly used for exterior wall sheathing.  Since wall paneling is primarily used as a shear diaghram and for wind and seismic load strength, the panels can be placed horizontally or vertically. However in 8′ tall or less wall construction, avoiding a horizontal joint can add some strength to the structural frame and avoid the need for joint caulking.
    If panels are applied horizontally, the joints should be staggered for additional strength. Many manufacturer’s recommend a joint gap of 1/8″ between panels.  Nail or screw at 12″ On center along studs and 6″ On center along edges. Sheathing typically will start at a corner. The exterior walls sill plate will commonly be recessed +/- 1/4″ which will provide the lip required to rest the sheating if the wall being attached to is plumb and square. The first corner piece should line right up on the center of a stud. Sheating will be applied with 2-1/2″ 8 Penny ring nails every 6″ into the studs, top plate, and sill plate. An air compresser nailer gun is typically used for optimal efficiency. If any nails miss the studs, they must be renailed.
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