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I am upgrading my panel and have a few questions on grounding.
So im putting in 2 ground rods at least 6' apart, do the rods have to be driven all the way below the surface of the dirt? I have the underground acorn type clamps for the wire.
Yes. I generally leave the top of the rod uncovered so the inspector can see it. When he is done, I just kick some dirt in to cover it up.

also it has to be one continuious ground wire from the panel to 1 rod then to the other rod, correct?
Not necessarily. You can go from the panel to the first rod, and clamp it there. Then with another clamp continue another wire to the next rod. I always use a continuous piece. It looks neater and I need one less clamp.

If I am using #4 wire does it need to be in conduit or can it come out of the panel and go right to the rod? also does all the wire have to be striped or just striped where it makes contact with the grounding rod?

sorry for all the questions, I just want to make sure I do it right.

Where does it exit the wall? Or is the panel already on the outside? If it comes out high, then of course conduit will make it look neater. If it comes out low then I would just go to the rod. Generally, if I run a solid conductor from an outside-mounted enclosure, I run it exposed, and strap it to the wall with BX straps, bent to snug around it. And yes, if it is insulated, it only has to be stripped where it connects.
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