I can tell you from my extensive (one whole month, ha) experience that the lid on top (and not enough other ventilation) caused too much moisture in my bin (see stinky question). From now on I'll keep the lid off (or propped open) unless it gets too dry.
I've been feeding about 3 pounds a week to 1# of worms and they go through it fast; I coarsely chop mine. I always check to make sure they're eating in previous areas before I add more food (and to see what they're up to).

Why do you have the newspaper on top? I don't think you need it. Be sure to bury your scraps. If the bin seems too wet, leave the lid off for a day or more as needed.

I find my worms go through food much faster when the weather warms up, so maybe you'll find that is true too.

I don't think you need more worms. Yours will multiply, so save your money.

As to how much food your are adding, I'm not really sure. But if you see lots of undecomposed food or the bin is getting smelly, it might be best to hold off. Bury your scraps in the yard to get rid of them.

I have a commercial worm bin and I always keep the lid on. Every so often, there are groupings of small pin-holes throughout the lid. It also does not "snap" on the top. It is a snug fit, but by no means is it tight. Even with this, there is always condensation on the lid. Leaving the lid off is no big deal, but your worms may crawl out and you need to be careful that your bin does not dry out!

I agree with Socks. If your 1 lb of worms are still living, they will multiply to an adequate population for your bin. It is not necessary to buy more worms.

I do the same as you with the newspaper. Even with the lid, I lay b/w newspaper on top of the bed. I read this when I first started my bin and now do it out of habit. Not sure if it helps.

Now, questions for you. How is your drainage? Did you poke holes in the bottom (some people also like the side) and put it into another rubbermaid? I just want to be clear with your situation. It's the whole "is it plugged in" question most IT people ask before troubleshooting computer problems :-). If you do not have drainage, that will definitely contribute to your wetness problem.

I'm just starting so not much to go on. My DH cut a piece of cardboard to fit just ontop of the bedding for my new bin. I have noticed that even though I put it in dry it is becoming moist so I'm hoping that it helps even the moisture in the bin. I don't have a moisture problem as of yet, but it's only been a week :) It seems to me that it will absorb condensation when there is extra & probably let go of some of the moisture when it is getting dryer in the bin.