I have poured my first sloped layer of mortar and put down my membrane. I was about to start putting up my densshield boards and noticed that i cannot bury the board in my top layer of mortar, I have to put the mortar in first then put the boards up and Caulk in between, Has anybody used this method? Whats better?? Densshield or cement board.Ive already bought densshield.

That's right, Dens can't be buried. Follow the installation spec for a normal pan liner install. Look at page 4 spec DS002 http://www.gp.com/build/DocumentViewer.aspx?repository=BP&elementid=3112

This another option that's approved by Georgia Pacific DensShield with a liquid membrane. http://www.merkrete.com/PDF/GP-Detail.pdf

You could probably substitute another liquid such as Laticrete HydroBan or RedGard, however that would probably void any warranties offered by Georgia Pacific or the liquid membrane manufacturers.

I have used dens a lot in the past. It's a good product and you should have no problems with it. Just make sure you tape all seams ad inside corners with mesh tape and waterproof all seams, corners and screw heads with a liquid waterproofing membrane.

Thanks Guys Im ready to install the densshield today mortars been drying for two days is there any special type of waterproofing liquid i should use???

Depends on what's available in your area.
My personal preference is Laticrete HydroBan, but that may not be easy for you to get.
RedGard will probably be more readily available since it's sold thru Home Depot.