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Emmie, just so happens I have done this a time or two.
1. Decide where you want the fence (obviously) and place stakes about a foot or two beyond where you want your corner posts, and offset to the outside by the post width, this will help keep the posts in line. Use a level when you set the posts to you keep them vertical.
2. Space your post according to your local code, or 8'. do not go over 8', the wind has a habit of knocking down longer ones and they will sag over time.
3. Place your top rail 1' below the top of your fence, and one foot up from the ground.
4. When you go to put the pickets up, flip them upside down and mark the picket to be cut. That way when when you flip it back over, the pickets will be the right height. it also helps to run a string long the top to keep the tops at the same height. You will have to pull it very tight to keep it level.
5. finish as you wish or leave natural. I used a preservative that could be sprayed on with a garden sprayer.
Notes:
Posts, if you concrete, wrap the post with roofing felt and seal with tar, or they will rot really fast, do the same if you put it in dirt, instead of 7 to 10 years. concrete can go as soon as 5 years if not wrapped.
Use galvanized nails, you don't get the rust stains.
Don't drive your nails in straight, drive at about 15 to 20 degrees, holds better, that includes the rails.
At the gate post, use a 10' post, and use 2 posts bolted together, the gate gets a lot of use and the post will flex and loosen.
Rails, use deck screws, about 3.5 or 4" and angle, assuming a 2X4 of course for the rail.
Well, thats all I can remember right now, good luck and have fun, get a tube of Ben-gay, your forearms are going to hurt.
PS if I mis-guessed the type of picket fence your talking about, email me and I can send new instructions.
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- Thanks for such a detailed answer, my husband and I will be trying it out in the next couple weeks!