Tom, You have unfortunately given the worst advice possible. There should never be two vapour barriers on opposite sides of the fibreglass, which is what would happen with the Kraft face out and the plastic in.
http://www.buildingscience.com/
This is a link to the best and most informative site in the continent on this subject.
the fact that wayter condensed in the wall space under the pl;aastic is to me a suspicious sign that something is wrong in the whole scenario. That water got there somehow, either from leaking through the foundation wall, or from moisture migration allowed due to an insecurly sealed vapour barrier and then trapped there. IMO< If VB is not well done, it is better not done at all.
This basement might be better off with a foam panel baord that would tolerate moisture and would not support the groth of mold in a higher humidity environment.
Excellence is its own reward!
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