Mark, thanks so much for the comments as well as the kind offer of the use of your wet saw! I wish I lived closer! It's always good to hear from those who have done it. Attached is a picture of the area to be tiled, the area underneath the cabinet (up to the bottom of the cabinet) as well as the strip above the sink, below the windows. The existing wall covering (can be seen to the left of the cabinet) which the tile will butt up against is 3/4" thick, it's actually a wallcovering and some kind of underlayment. The tile is 3/8" thick. Add the Hardiboard and I'm up to 5/8". Perhaps 1/16" for mastic and you're right, I'm almost flush. Should I go with the 1/2" Hardiboard which would make the tile stand about 1/4" proud of the existing wallcovering? My plan was to use bullnose tile across the top.