Hi,
Since moisture meters are expensive, I limited my suggestion to just one lower priced one. It's not the best but it is a good brand and is a pin style, which I feel is more accurate for wood.
http://www.amazon.com/exec/obidos/tg/de ... i&n=507846
Always follow manufacterer recommendations. I think Kahrs should specify the temp and conditions their flooring needs to be installed in. That 4% variance guidline is for solid wood floors. Engineered is abit more flexable. However, let's say the flooring is 8% and your subfloor is 15%. Then you have a subfloor moisture problem and that needs to be corrected. Ideally, subfloors will average around 10% MC. Since you're planning on using the 2in1 underlayment, this isn't as critical but anything that can be done to eliminate moisture to the subfloors is good.
Your plan sounds good. Instead of patching the plastic now, just lay a new moisture barrier over the top. Is the earth under that barrier wet or dry. If wet, you have a drainage problem and that should be fixed in time. I'd check those floor joists with your meter before attaching plastic to them. You don't want to trap moisture in them either. After repairing your moisture barrier, get a meter measurement. Then check it again in a week and see if there is a difference. If no difference, then go ahead with the plastic on the underside of the joists plan if you wish. I don't think it is needed unless you live over a swamp.The best way is to ensure moisture doesn't enter the crawl space now. Redirect downspouts, improve grading, add drain pipe, etc. Cover crawl space with 8 mil black polyethylene. Improve foundation venting to ensure good cross flow. All these improvements will help eliminate moisture in the crawl space. Good luck.