[lampskin]

I'm not sure how everything's attached to the foundation. I would assume the framing is embedded into the concrete foundation, or attached to rebar in the concrete. So do I have to replace all the wood framing?

Is this kind of what you're talking about(see attached diagram please)? Is this how everything's supposed to fit together? I have no experience doing this kind of stuff. Is it something I can do myself?

It sounds to me like you're recommending putting flashing around the lower part of the wood framing behind the concrete to direct the water.

How would the water have got in behind to rot the wood?
My crawlspace is not paved. It's just dirt.
Could water moisture have condensed up from the earth floor of the crawlspace and got into the wood, or should i be concerned about moisture seeping through from the outside of the foundation?

If I call someone in to do this job, should it break the bank? I wasn't counting on doing this work, so it's a nasty surprise that it should be a difficult fix...

thanks for your help though, and the quick response!