Steps:1. Pull out the nails connecting the siding to the neighboring piece of siding using an old-style nail puller (figure A). Use a small wood shim under the lever to reduce the risk of damaging the siding.
2. Remove the damaged section of siding (figure B).
3. Measure the size of the opening and cut a replacement panel. Use a chalk line to mark a nice, straight cut line. Put on safety glasses and a dust mask and cut the piece to fit using a circular saw (figure C).
4. If necessary, cover the opening with a new piece of felt or tarpaper to guard against the elements (figure D). Secure the tarpaper using roofing nails.
5. Fit the new piece of siding into place and secure with weatherized siding nails that resist rust.
6. Caulk along the seams to seal the siding and protect the sheeting from weather damage (figure E).
7. Replace any trim you removed and caulk along the seams. Wait a few days then prime and paint the patch to match.