Foam gasket like this? Foam gasket? I can do the half inch! Thank you!Which reminds me, lay down the foam gasket material under your pressure treated 2x4 bottom plates to form a capillary break between the wood and concrete, will help extend its life. Run flashing around the outside, and when you set your SmartSiding, be sure to gap it just a bit, so its not in contact with the ground. 1/2" is fine.