Thanks, your comments are very helpful. I understand the splitting issue especially with tight boundry nailing such as 2" or 3" OC. But in certain circumstances you can go up to the 350 plf limit with 6" OC boundary nailing. Footnote (h) in table 2306.4.1 IBC 2003 says that if you apply panels to each side and the nailing is less than 6" OC then you have to offset the panel edges from inside to outside so that the boundary nailing does not occur on the same stud otherwise you have to go to 3x members.
Sorry to beat this to a pulp, but (h) implies that you can use 6" OC nailing on each side and not use 3x. Also, I am typically referring to 2x6-framed walls. With the 1 3/8” (8d) fastener penetration on a 2x6 would seem to be potentially less damaging than a 2x4.
By the time you apply to both sides and possible stagger the panel edges it is probably easier and cheaper to just go to 3x members.
Thanks,