Another factor is the brief sun exposure in that area right now. 2-3 hours of direct sun is not enough to let a small plant overcome any adversity. That, combined with the time of year, means that your soil is almost certainly too cool to help much.
How bad is the drainage? When it rains, is there standing water? If so, for how long? I've seen daylilies thrive in wet conditions, such as in areas with a high water table, or at the edges of ponds and streams. I've also had them do surprisingly well when the rootball of soil was submerged in a 5-gallon bucket of water. A clump of Sausalito Dawn actually lived for 3 years, blooming every year until a record-setting cold snap froze the bucket solid for a week.
