Help, need alternative to dissolving cheap T-11 siding
Well after lots of research - I am going to seal new T-111 and replace the lower 4' on both sides, then I'm going to use the Hardy siding on the front where more insurance is needed.

In both cases I'm using a good moisture wrap - Felt Buster and adding pressure treated 2x6 sections in-between each stud to secure the new materials to.  This will lock the wall with the siding helping stabilize everything.

Lots of info on fixing T-111 on Youtube.com