Truly, I am not trying to reinvent the wheel here. I have followed Joe L's recommendations from the Insulating Sheathings research report at http://www.buildingscience.com/document ... archreport On page 12 he describes the assembly I will be using: "Wall Section 1 - Insulating Sheathing and Housewrap over Plywood or OSB: The first strategy involves installing the insulating sheathing over top of a layer of building paper or housewrap and wood sheathing. This is the most durable assembly proposed in this guide as the drainage plane material (building paper or house wrap) is supported by the plywood sheathing, and protected against wind loading and other environmental factors by the insulating sheathing. This type of assembly would be recommended in areas or high exposure and rainfall." Since I am taping all the seams on the polyiso panels, I think of the foam as the first line of defense from exterior water. Moisture coming from the interior of the house is a whole other worry and so I have run dew point calculations. Given the total R-value of the wall and the typical winter temperatures, the wall cavity temperature should remain well above the dew point. Rocon, I'm not a building scientist, but I'm wondering if the problem you mentioned had something to do with the higher perm value of XPS (~1.1) vs. foil-faced polyiso (.03)? Did the building end up with soggy exterior insulation? Do you know if the moisture was coming from inside or outside? Kurt, you have mentioned how poorly the open joint rainscreens wear over time. Could you say more about what were the likely causes of the failures? I have encountered some successful Hardie rainscreens (even in the rainy PNW) and I'm curious what distinguishes them from the crappy ones that you have seen. Thanks everyone for the continued great discussion!