Andy,
I appreciate your comments and information regarding the splined siding at the Shaker village.
We are going to give it a try. I am going to adapt a couple of ideas I saw in the new Timber Frame Joinery and Design book put out by the Guild. The title is The Infill System for the Lancey House.
They are using panels whereas I will will use spray in place Icynene. This enables me to adapt it to braces,etc. The "spline" in this case is urethane foam sprayed into a groove that is on the timber and the 2x4 attached to it.
I will let you know how it turns out at least in the short run for labor, cost, etc.
-Collin