Jim,

Did you write much of the wikipedia entry?

There is a small amount of confusion,

First, Blockständerbau and Bohlenständerbau are not the same thing, and are not related.
The first is a term that is often misused even in vernacular German. It correctly refers to a log structure with posts worked into the walls to make construction faster. In this case, the loads are still born by the horizontal logs stacked between the uprights. When you do this you have to have log consoles, the posts can't be two stories high without risking the structure becoming unstable. This lacks any form of added bracing. Usually this takes the form of a first story that is posted and a second story that has interlocked log corners.
Bohlenständerbau, in contrast, is a true timber frame with a wood plank infill. The planks may even be as thick as logwork, but the distinguishing characteristic is the fact that the structure as a whole functions as a timber frame.
It's confusing but the terminology is very specific, much more specific than English speakers would probably ever bother with.

When dealing with shrinkage there are two different approaches. If your infill is thick, you can stack it up so that there are gaps at the top of the posts. This is carefully calculated so that the gaps will close perfectly as the infill shrinks.
If you have thinner planks for infill, then either you wait until everything is very well seasoned before fitting it into the wall or else you have a deep groove cut into the header beam that will hide any shrinkage.
One alternate approach is the use of vertical planking on the upper level of the structure. A wedged plank is inserted through a hole in the header beam that can be driven down to force the wall planks tight as they season. Of course, you would need such a plank in each cavity.
Usually in Switzerland you will have a long window ledge that has a broad lip on its underside. There will be horizontal infill under the window ledge, and this lip will hide any gap that opens up. The ledge is securely tenoned into the posts.