There's no problem putting steel over wood. Two things to consider first are, is the existing wood secure? Not weak/rotten? If so, the other main thing is to ensure that there is proper air flow so that there is not trapped moisture up against the steel. High moisture would shorten the useful life of your siding. Other than that, should be no problem.
If you think there "might" be a potential moisture issue, you could always run some horizontal nailer strips on the wood, then attach your steel to them. You could use 2x3 or 2x4's, but really should only need 1x's to allow air flow between the existing wood and the new steel.
Lastly, I always recommend using screws rather than nails when dealing with steel roofing/siding. The nails have a tendency to work out some over the years, which can allow for leaks as well as compromising the holding integrity of the fasteners.
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