Steve, Wow, sounds like you had a major project on your hands because of the builder cutting corners. I don't think that the insulation touching the underside of the roof is a problem as long as the air can move up from the eaves to the ridge. What does bother me is what you said about the styrofoam baffles running all the way up. If the baffles run continuous and the air moving inside the baffles is kept separated from the air in the insulation, you will get condensation again on top of the insulation. The baffles need to have holes (lots of holes)in them to allow the air in the insulation to breathe into the baffle area and vent up to the ridge. Do you have enough area inside of the baffle after cutting them in two? Also, will the insulation put enough pressure on the baffles to collapse them?