Take the tar paper off...It will hold heat and contribute to drying out the vinyl, it will bleed through as well, by running down and collecting because of the waterproofing oils. Wrap the bare sheething after checking out the condition with house wrap. (Tyvec,ect,ect.) Use the correct size foam board , if not you can recess your window and door trim, and you don`t want to do that. If you`ve gone through the process of stripping down the old siding to the sheething , it makes sence to apply to the products` specs. The wrap is a moisture barrier and the foam is an insulator. You want both.Also if you apply a strip of Ice and water barrier (10")on the sheething and over the tops of all roof stepflashings or wall flashings, you will get much better protection against leaks due to ice and weaknesses in the siding. The tops of flashings are the weakest points. (horizontal travel and wicking)