I am no expert, but I don't think it is a good idea to lay the stone against the house, siding or not! Behind that siding is a wood based product and behind that the sill and studs to your house. Raising the patio above this level will cause water damage and will also lead to insect problems. I remember reading that the soil should be at least 6 inches below the siding allowing only the cement foundation to contact the ground while allowing air to circulate under the siding.

As I said, I am not an expert, but it does not sound good!

Agreed with eigdeh for same reasons, water and insects.

Also, you will need to slope your patio slightly to allow for water drainage to the outside, some suggest 1/4 to 1/2 inch drop per foot. It doesn't sound like much but over a 10 foot span, it can drop 2.5 inches or more, and now your top level stones would definitely be running into that next siding piece. When we did ours, we had to remove the lowest layer of siding, and recut it to fit.