insulation in crawlspace

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Moderator Post (s) for this thread: > Crawlspace insulation by Billhart on 10/29/2007

I live in South Central Indiana. When I bought my house I noticed that even though the crawlspace was dry it has had some moisture. It is insulated in the floor but I have been told the paper side of the insulation should have been turned up instead it is turned down facing the earth. The insulation is falling down in places and it looks like moisture could have caused this, but only in certain parts of the house. The crawlspace is vented and the walls are insulated also. Also I installed a hardwood floor and notice it has started cuping (washboarding) but only in a spot about 4' x 6'. Everything looks dry but from what I've read moisture or humidty is the problem. Any suggestions??