Rob: My first approach would be to do the seismic load calcs using R=1.0 to determine how that would compare to the required wind load. If seismic loads for R=1.0 are really low, realive to wind, then you should be able to design for wind without concern for energy dissipation. If this project requires a building inspectors approval, then he or she should be willing to accept your PE stamp in place of an R value in the code. If seismic loads control and are unrealistically high, then you need to think the design through in more detail. One approach to carrying high tension through knee braces (and to reduce the negative effects of joinery in the post), is to route a channel in the top of the brace, lay in a steel rod or cable, and then cap the channel. Run the rod throught the post and the receiving girt and anchor with bearing plates. Then use stub tenons to keep the braces in place. That still doesn't give you a structure with an approved R, but it will carry more tension than a few pegs. -- Dick