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Drip edge on the eave goes on first, then the felt paper, then install the drip edge on the rake (gable ends)

I would seriously consider adding an overhang. As Joe mentioned it really helps protect your siding, not only from the top but from splashback at the bottom.

Aluminum would be my choice for soffit. Although I though you indicated you didn't want an overhang? Do a google search on "how to install soffit" as it would explain much better than I could.

Plumb cut your gable fascia and butt it up against your eave fascia, cut off the little triangle that hangs below the eave fascia.

Plywood should end flush with the fascia board
 

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If I understand correctly you have an overhang on the eaves but not on the gable ends? An overhang would be better, but a lot of sheds seem to be built the way you mention. I would wait to install the 2x6 fascia until you have your sheathing on.
 
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