Moderator Post (s) for this thread: >Either way...byhomebild on 11/22/2008
There are lots of details that you have not give about the type of siding, where the plumbing is going, type of climate, type of construction, etc, to give any absolute answer.
But in general it is best not to have supply (hot and cold) plumbing in outside walls. The reason is that they are more likely to freeze.
Drain and vent lines can be in the outside walls, but it is best to limit the amount because they reduce the amount of insulation that you can have and allow for air leaks.
If the plumbing is properly installed with the required clearances and protective nail plate used where require and the siding installers do the job correctly then it does not matter.
But if they plumbing in the outside walls is done after the siders then that reduces the posibility of a mistake.