First and contrary to what the people that sell grub poisons tell you, grubs are not the most favorite food of moles, earthworms are. Since very few would purchase something that is advertised as killing off the earthworms (which those products really do) because most people understand earthworms are beneficial, desireable.
Milky Spore Disease, "Bacillus popillea", can work at killing off the grubs in your soil, eventually, but because it is passive, the grub must ingest some, it can take some time. However, every grub that is killed by MSD spreads the disease around more since the bacteria that kill the grubs go into hibernation whne that job is done and lay in your soil as spores of that disease until ingested by another grub.
It is an unfortunate fact that organic gardeners tend to have more grubs per acre then those adicted to synthetics simply because our soils tend to have a food source, organic matter, for the grubs to live on, but contrary to what the manufacturers and sellers of those poison wnat us to believe the grubs are not that much of a problem except in soils of those that use synthetic products and have sick soils anyway.

SO, where do I go from here ? What's the fix ?
My lawn has always been sparce, not thick with grass. Mostly due to the Oak tree debri, dead limbs/twigs, and acorns. I don't believe that I have many earthworms to kill off. Considering that what do you recommend ?
Anybody else want to jump in ? Thanks, Nitrojc.

I've got a major grub infestation. Applied beneficial nematodes once in '07 and once in '08. Also applied Milky Spore once in '07 and once in '08. Neither worked at all. Those little bastards are everywhere. But I've got two dogs and two cats and have decided to just live with all the bare spots in my lawn that grubs cause rather than subject them to chemicals.

The first place to start to grow a good lawn is with the soil. You need a good, healthy soil to grow a strong and healthy stand of grass, or most any other plant.
Start with a good, reliable soil test from your state universities Cooperative Extension Service so you know what your soils pH and nutrient balance is and then dig in with these simple soil tests,
1) Structure. From that soil sample put enough of the rest to make a 4 inch level in a clear 1 quart jar, with a tight fitting lid. Fill that jar with water and replace the lid, tightly. Shake the jar vigorously and then let it stand for 24 hours. Your soil will settle out according to soil particle size and weight. A good loam will have about 1-3/4 inch (about 45%) of sand on the bottom. about 1 inch (about 25%) of silt next, about 1 inch (25%) of clay above that, and about 1/4 inch (about 5%) of organic matter on the top.
2) Drainage. Dig a hole 1 foot square and 1 foot deep and fill that with water. After that water drains away refill the hole with more water and time how long it takes that to drain away. Anything less than 2 hours and your soil drains too quickly and needs more organic matter to slow that drainage down. Anything over 6 hours and the soil drains too slowly and needs lots of organic matter to speed it up.
3) Tilth. Take a handful of your slightly damp soil and squeeze it tightly. When the pressure is released the soil should hold together in that clump, but when poked with a finger that clump should fall apart.

4) Smell. What does your soil smell like? A pleasant, rich earthy odor? Putrid, offensive, repugnant odor? The more organic matter in your soil the more active the soil bacteria will be and the nicer your soil will smell.

5) Life. How many earthworms per shovel full were there? 5 or more indicates a pretty healthy soil. Fewer than 5, according to the Natural Resources Conservation Service, indicates a soil that is not healthy.

to see what else need to be done to make that soil good and healthy.