Since you amended the planting hole with peat moss, there is no way of knowing what the moisture levels might be without actually poking and prodding around. Amended planting holes can cause serious problems for plants, especially along the lines of root system development and moisture retention.

In some instances, the planting holes become soggy bathtubs filled with roots that haven't begun to venture out into the native soil. In other cases (especially with peat), the planting hole becomes almost hydrophobic with large bone-dry pockets that refuse to be wetted.

The fertilization of newly planted woody plants should be done very conservatively the first season, if at all. It's almost always a good idea to allow a plant to develop some roots into the surrounding area before introducing fertilizer. New roots and new shoots can be burned by fertilizer salts.

Well she doesn't look any better :(
Leaves all died.

I totally agree with rhizo 1's comments , but I'd go further. Despite the zillions of bales of dry peat moss sold every year, it's pretty useless stuff except for increasing the water holding capacity of extremely sandy soil.

For rhododendrons and azaleas, it's far better to use something much coarser such as partially decomposed bark. Also, when planting, don't create a hole as you might for a tree. It's far easier and better in the long run to palnt on top of the existing soil or in a very shallow (6 to 8", wide depression.

I always used composted peat as a soil amendment. I haven't seen it on the market for a number of years. I now use a mixture of peat moss and pine bark fines as an amendment to the native soil, and then a pine bark nugget mulch. It helps control moisture and acidity. My older beds are on a hillside so drainage is natural. My newer beds are in the flat so they are built up on top of the grade. Although, I live half way up a hill, in some areas when I dig a hole, it fills up with water. I have planted hydrangeas, swamp azaleas, and other moisture loving plants near this area. Deciduous azaleas Gibraltar and Klondike like hillocks in this area.

I'm not sure what to do with it now. It's planted on the side of a slight hill where drainage is decent and it shouldn't get waterlogged. I wonder if it got too dry because our temps jumped up a couple days around the time the leaves all turned brown and soggy looking. The leaves are just all dead now and I am hoping it will come back.

I dug the plant up. The soil was moist but not waterlogged. I see signs of life still near the base of the plant although it doesn't look like any root growth had occured since planting. I moved it to another spot nearer the area our other Azalea lives in. I'm hoping I won't lose the plant.