panelized construction

[pocono_couple]

I have been visiting this web site for a number of years, and, finally, my wife and I have started our own project.  The foundation is 20 by 26.  20 feet is the widest that we could go on our narrow 50 foot wide lot, and 26 is as deep as we could go with two floors and still get a permit for a barn.. but that is another story!
  we are currently framing the walk out basement, and I intend to get the first floor joists in and the deck covered before winter really hits here in north east PA.  We will cover it up and return in the spring.   In the meantime, I am interested in constructing wall panels in a shed over the winter.  I am sure that I will run into lots of questions.  the first is this.  the first floor walls will be 8 feet high.  If I sheath with 4 x 8 sheets ( i am using advantech) and run them vertically do I lay them flush with the  bottom of the bottom plate or should I slide them down so that when the wall is set up the sheathing will run to the bottom of the rim joist.   somehow, it seems to me that this would help to make a stronger connection between the wall and the foundation, but , if it really does not matter it would be easier to keep the sheathing flush with the edges and bottom of the wall with an inch and a half extension which would cover the second top plate after the walls have been installed. 
  thanks for sharing your thoughts.  I will post some pics a little later!

[PEG688]

  Do you have to pass a inspection? Why I asks is that the IRC call for All edges of sheathing to be nailed , so if you lower your sheets down , you more than likley will have to run a row of solid blocking at the top edge  of your sheathing .

Are you using OSB or CDX? OSB can be ordered as 4' x 9' sheets , this might give you the lenght to run top plate ,(I recommend about 3/4" down from the top , so centered on the top plate ) and down onto the box sill maybe all the way to the PT sill plate , depending on your pony wall heights.

   Simpson  also sell a LTP5 IIRC , the number that's made to attach the bottom plate to the box sill.   

[desdawg]

Personally I like the idea of having the sheeting run onto the rim joist just for the reason you mentioned. Strength. The 9' sheets sound like a good solution if you can haul the panels that way.