Wow, I don't have my book handy but I think two #5's horiz would have been called for, depends on the load above. WIth that buck material you gotta brace, alot. You have about 500lbs of wet concrete over that window when pouring.
A drainage plane is rolls of plastic sheeting that has dimples in it, I used a product called wrap'n'drain. It comes in 75' rolls 8' high. I was thinking you could put that over the peel & stick product, after you remove the dirt of course. It allows any water that gets behind it to move directly to the footer area without building any pressure against the wall. However you need to have a way to remove the water from that area. If the ground has decent drainage a little stone may do the trick. If you have poorly draining soil, at the area of the footer you may need a french drain around the base of the footing.