Insulation, Radiant and Vapor Barriers - rim joist or band joists

hello,i,m in the process of fixing up my home ,right now i have been replacing the rim joists on the back of the house,they were rotted out..so i decided to do the side joists..i have poured basement walls and there are two joists resting on the wall..the inner joist is in good shape,but i noticed there is no insulation between the inner and the outer???should there be..since i have the old wood torn off i caulked along the inner joist along the wall and board ,should i insulate or????also would painting the exposed board(inner joist) be ok or a waste of time..thanks

I would paper side to the inside of the home . Dont think Id paint them. What took them out??? Do you need a metal drip cap on the new one so water dont get in to it;) ED