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Glad I can be of help, Lisa....
Calling a qualified contractor, such as terminex, prior to repairs would be my advice. They may locate more infested areas that your not aware of. And, it may prevent you from having to repair/replace siding or trim you've already refinished.
And, if your going to replace that "lame" gutter, try and avoid the gutter being directly applied to the fascia board. Gutter stand-offs will help to allow the facia board to dry instead of constant dampness behind it. Heck, I've seen gutters applied to new homes that weren't even painted yet. The home ended up having a 4 inch swath of unpainted/unprotected fascia board across the entire building.
I can say if the ants will eat cedar or not. I know they'll carve through it if it's in their way. However, they do love those damp dark warm places to live such as behind the kick board of the door or even deeper into the sheathing and framing of the building.
So, get rid of the ants, repair damaged wood, prevent any water infiltration and, then apply your fresh paint or finish. Good luck....
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