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$10k sounds ok for removal and dispose of all that. I would go with scyon, even though you have to paint it every 8-10 years. Vinyl cladding is out dated now.

Being an external wall they don't usually set the nails or joins so you should be able to see where the nails are in the studs. Another thing you can do is knock along the wall and you will hear when you hit a stud. Or you can cut a strip of fibro about 100mm off around the bottom of the frame...

Yes you can wattleido

I live in Sydney and I build project homes. I would say 90% of new homes we do with cladding are sycon cladding. Not a bad product and it is made from fibre cement