Your poor wife - hope she hasn't read what you might do to her
hock: hock: hock: the bottom tray is now ready to be put on the garden,
What you have done is correct, the reason it smells is because there is no air in the mixture (anerobic) so giving it a good turn over will help.
Unfortunatly the worms are supposed to burrow through the wastes - keeping the drainage system intact - but when the worms dont like the habitat - they move - and so the problem gets worse.
take advatage of the sun - leave the lid off and remove the top layer of newspaper for a few hours, dont worry about the worms they will stay away from the sunshine, this will dry it out - turn the compost as well to dry it more. The smell will soon go.
cardboard (as in boxes) and cardboard egg boxes are great for wormeries as they hold air in the curves, so shred some of these as well.
The worms will come back and finish off the food - dont worry too much about the flies (as long as they are fruit flies (brown) ) as they help the composting process - its us that don't like them.
If there is loads of food , it might be better to remove the worst of it.
Hope that helps
Ronnie