If I use step flashing would I have to remove my existing siding and put it under, then reinstall the siding,/QUOTE]
That is the only correct way to do it.
Only if you don't mind it raining between the house and the carport.I would be better off building the carport detached and only attaching a small connector from the house to the carport.
You are correct.Do I need to cut the house wrap and put the flashing on the inside of that as well.