I just started the thesis. The problem is that my thesis adviser and most of the panel members are civil engineers. the thesis stated above was the one approved by them because civil engineers find it difficult to measure soil density. I think the moisture sensor that I researched depends on soil conductivity. And I also found a relationship between soil moisture content to that of the soil density by an exponential formula. Someone might be doing it already but not yet successful because I did not hear anybody doing soil test using this method.Getting back to the original topic, I think your idea could work, and most likely there is someone already doing it. But theses need not be original. My suggestion would be to investigate how agricultural engineers measure soil moisture. Would it be through soil conductivity (that might be fair for a given soil type)? Or perhaps they put down a probe that senses humidity?
As earlier answers suggested, if you're going to use a microcontroller anyway, you can probably dispense with most of the circuitry and feed the output of the moisture sensor directly into the A/D converter of the microcontroller. Once the information is in digital form, you can compare it to whatever threshold you wish, and it will be better data than just a 3-level dry/ok/waterlogged reading. You can even use it to trigger watering if necessary. Try taking a look at the site http://www.picaxe.com/ . The PICAXE is based on the PIC microcontroller, but they've made things simple so you can just program it in BASIC. Easy to use if you don't enjoy programming, and have only simple needs. The parts are inexpensive, just a few dollars, and development software is free. And they do have A/D converter on the chip, so there's very little else that you need to add to make something work.
regarding the problems, I will be posting later the schematic diagrams.
Thank you!