Jim, that is correct about the chalk line being the reference line. If you have do use 1.5" of the reference corner and you have 3" braces that are 1.5/1.5 you could then just use the chalkline for one side of the mortise.

I did a little sketchup drawing but can't access my photosite. When that is up i'll post it.

Here is another problem that I am thinking about.

1. If you have a post and you decide to put the bow in. When you lay out your wall bracing on the post with this method your brace will sit proud of the post on the outside however much the post bows in. Then when you lay-out your bent brace connecting with the same post on the adjacent side, you would have an extra deep housing.

2. If you take the same post and put the bow out. The wall brace would sit shy of the outside of the post in the plumb plane. And then you might have to map a special bent brace to reach that same post because the bow is out.

Any thoughts?

mo