My wife and I are renovating a 1920 bungalow where the exterior siding was nailed directly to the framing studs, with no sheathing in between. The siding is in excellent shape and so are most of the framing studs (we've replaced a few termite damaged ones). We're wondering if we should install some kind of moisture barrier from the inside, between the siding and the insulation and drywall. A friend suggested cutting strips of Tyvek, and inserting them between the studs against the siding, then stapling it to the studs, then tucking the insulation in, then the drywall. Is that a good idea? It seems there should be some extra layer of protection between the exterior siding and the interior drywall.
Any input would be appreciated. Thanks!