You can see that we have already placed the area for our mulch trail. The young starter tree to the left will be transplanted to a different location. The tree in the center is dead and will be removed.

On the fence side, I have in mind to plant a series of native and non-native plants for a bird/butterfly garden. I'd love suggestions though for the left side of the path were it will meet the yards edge. What should I plant in sun/filtered sun that gives you the feel of "walking into the woods" or "just outside the forest?" Keeping in mind my husband won't want it much above knee level...

FataMorgana

I see you are suffering from the drought - Hang in there! Indiana seems to be one of the worst states right now! I'm going to have to replant a lot next year. Usually, the climate is conducive to less drought-tolerant forest plants, but this year is exceptional. Good luck with your restoration!

Any materials you purchase bulk and a topsoil company is going to be less costly than bagged products at a big box store or garden center.

I've built some lasagna gardens with a lower portion lined with rocks as dug from the land. As I find more rocks I add to the dry creek bed. Where nothing else will grow in a shady acid clay soil this has worked well.

July 2012 backyard under trees near hose reel on house
planted with burgundy ajuga, golden creeping jenny, ornamental grass Carex Ice Dance,& corsican mint as visible in the photo. The rocks start under the downspout and move across the garden leading out toward a fir tree and another path. Round concrete stepping stones lead to the this area and help keep our feet out of the poorly drained area during winter storms. We're in the midst of planting Ajuga Chocolate Chip around the stones layering over the thin sod with newspaper & compost. The ajuga has filled in well for us in other areas if kept moist until established.

newly layered over sod around stepping stones on the left side

In our front yard we dug out a portion of clay soil to create a rock pathway from the gravel driveway through the front yard to a trail in the woods. In 2 spots we dug down 4 feet deep & 2-3 feet wide then filled with rocks. The runoff from rain flows from the driveway into the garden path. All the rocks were from our years of vegetable gardening and uncovering them. Before laying down the rock path we spread landscape cloth on top of the soil. We used free broken patio blocks as stepping stones. Then on the sides expanded the existing garden by layering over the soil first with cardboard then upturned sod from the pathway plus lots of partially composted horse manure + bedding and whatever other compost ingredients we came upon. Since then the mounded beds have shrunk down considerably, but the plants are doing quite well in the rich earth.

early July 2012

where the path meets the woods with herb garden on the right and garden of spreaders or thugs on the left

Many of the plants were picked up free at plant swaps over the past few years. What grows well also duplicates itself here, so I've made many more plants as they've spread and matured. What doesn't make it in this rich, moist soil gets tossed.

Bioteach - For the soggy area, with butterflies and hummingbirds in mind, I would plant Buttonbush, which I mentioned in the Native Exchange forum, Spicebush (lindera benzoin) a host plant for Spicebush Swallowtails, Pawpaw which is the only host plant for Zebra Swallowtails. It's a tree but it's not a big tree, Swamp Milkweed (asclepias incarnata) host plant for Monarchs, and Cardinal flower (Lobelia cardinalis) which has bright red flowers that hummingbirds love.
You have a great project going.