Covering the crawlspace floor with plastic will reduce the amount of moisture coming up into the house. The installation does not need to be perfect, anything is better than bare dirt.
If I was insulating a concrete block house, I'd glue on at least 4 inches of XPS in two layers, then fasten furring strips or sheets of OSB on top using Tapcon screws. Then nail the siding to the furring strips or OSB.
This is also the time for new windows. The new windows should be installed flush with the foam, otherwise there is a thermal leak.
If I could afford it, I would use polyisocyanurate insulation (the foil face stuff).
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