A wilted look is a trait of overwatering, so this may well be the problem.

Definitely cut holes in the plastic liner. I'd take the whole thing out myself, since one of the best features of moss and coco fiber lining is the drainage. However, since the plant's already in there, you can probably poke some holes into the liner from the underside of the basket.

You probably won't need to water your fuchsia as often as some of the folks on this forum. San Diego has more humidity than many of us do. (e.g., I was in Southern CA for 10 years, and I can promise you that we're much drier here in Utah.)

-Crazy