The bird is eating insects, not just pecking at the wood, you may have a infestation of some type (maybe ants or something worse) have your favorite exterminator identify and treat the underlying infestation problem and the woodpecker will not be interested in your siding most likely.

The obnoxious bird is trying to find insects. Don't assume they are there.

We are inundated w/woodpeckers on the cedar portions of our house, which are free and clear of insects. They are a nuisance and store acorns in the walls. Pounds of the little nuts fell out during our renovation.

Sorry, I don't have a simple and legal extermination method for you. After much research we haven't found any way that works.

The previous owner of our house wrapped the cedar siding with vinyl, same circumstances as yours. Wow, he hated those birds.

Sorry, nothing else to say, but the vinyl isn't really all that bad. Don't have a heart attack over it.

Oh, just to add, if you had a cat inside the house watching the woodpeckers doing their thing, well, I don't think the woodpeckers would do that if they could see a cat watching them.

I operate a Nuisance Wildlife Removal business. We use attck spiders to get rid of woodpeckers. You can get one at this website http://www.attackspider.com

It seems odd but they really do work.

Here is a link that might be useful: Woodpecker Damage photo of my home