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Jesse, particle board is a real No-No under tile. It is just too unstable if it ever gets wet. If you want any kind of tile on your floor, the particle board must be removed.
Assuming you replace the particle board with 3/4" BC or CC plugged and sanded plywood, and assuming your joists are sufficiently stiff (we need to know the size spacing and maximum unsupported span), then you can use 1/4" backerboard. Each manufacturer has his own instructions, but generally, you embed the boards in a layer of un-modified thinset, screw the board down with backerboard screws (avoiding the joists), then you tape and mud the joints with fiberglass tape (not the drywall stuff) and thinset.
You are already aware of some of the problems with setting and sealing Satillo. You might find it easier to install a ceramic or porcelain tile with a Satillo look than real Satillo. Real Satillo is sun-dried clay, so it is real soft and fragile. Floor structures for Satillo must be very stiff, so we use the same standards as for a stone floor, which is twice as stiff as for ceramic tile. Satillo is hand made, so the thickness and overall dimensions will vary, making your layout somewhat harder.
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Bob
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