When measuring the ledger board should it be 1and a half inches shorter on each end so the rim joist can be nailed into the end of the ledger board. Is this the right way to attach your rim joists to your ledger.

If the floor joist that you are laying over a plate and capping that end with a board flush to the outside rough framing that board is a "band" board or "joist band". Because of it being flush the joist will be cut 1 1/2" shorter at the area so It all ends up being flush to the outside wall/plate.

http://www.coa.uncc.edu/index.php?option=com_gallery2&Itemid=211&g2_itemId=13848

As a tradesmen many times I hear that terminology to express a joist band on many post and that is incorrect. This is a ledger board

http://www.rd.com/images/tfhimport/2001/JA01_Wood_and_Stone_Deck/20010701_Wood_and_Stone_Deck_page004img003_size2.j pg

A ledger board is attached to a surface and the joist can come off that with joist hangers. Or above that ledger board.

In my neck of the woods a ledger board is always referred to to make a ledge to 'hang the joist" Its the difference where that board caps the joist on the end and "sits on the plate below it.