Measure for Measure; Play by William Shakespeare. Directed by Joseph Papp.

By John Beaufort

More than a decade ago, the New York Shakespeare Festival transported ''Much Ado About Nothing'' from Renaissance Messina to Teddy Roosevelt's America. The results were enchanting.

While the revival of ''Measure for Measure'' at the Central Park Delacorte Theater remains rooted in Vienna, director Joseph Papp has moved the time forward to 1910. The results of this modernization are somewhat mixed. The rationale may be that Shakespeare's parable comedy of misused power and hypocrisy in high places adapts to an age of middle-European ferment embracing Freud, Schnitzler, and the twilight of the Austro-Hungarian Empire.

Whatever the reasoning, the moral milieu of early 20th-century Vienna scarcely harmonizes with the codes of ethics and honor prevalent in Shakespeare's day. Such reservations aside, one can respond to the Papp version on its own terms, appreciate its virtues, and applaud the integrity of the overall performance. This revival looks on the light side of a dark comedy with a biblically inspired title.

When Duke Vincentio of Vienna (John Getz) decides to do a disappearing act, he assigns to deputy Angelo (Richard Jordan) the responsibility of running the city and enforcing its long-neglected draconian laws, one of which inflicts the death penalty for sexual relations unblessed by wedlock. Almost immediately, Angelo has young Claudio (Joe Urla) arrested for such an offense with Juliet (Elizabeth Perkins), his betrothed. The rest of the complex action centers on the efforts of Claudio's sister, Isabella, (Elizabeth Mastrantonio) to gain her brother's freedom without in return sacrificing her virginity and honor to the suddenly lustful Angelo.

Meanwhile, the hovering duke, disguised as a friar, initiates the behind-scenes manipulations that finally resolve all difficulties and contrive the ending that makes ''Measure for Measure'' a comedy instead of a tragedy. Mr. Papp's way of ameliorating the play's bitter side is to present Angelo not so much as a despicable hypocrite (which he certainly is) as a prim bureaucrat, a stuffed shirt who can scarcely comprehend his lapse from a long-imposed uprightness. Mr. Jordan plays him as a straight-backed, stiff-necked functionary whose unscrupulous misuse of delegated power is almost as incomprehensible to him as it is frightening to the importunate Isabella. He wears his authority like a new suit. Their scenes of confrontation are riveting, as acted by Mr. Jordan and Miss Mastrantonio.

These confrontations - with their subtle observations on the dangers of mistaking righteousness and self-righteousness - contrast with the sly maneuverings of the masquerading duke. In his own jolly way, he too is a seemer and schemer. Mr. Getz presents him as a smiling Mr. Fixit, anticipating the end that will justify his means, secure in the knowledge (shared with the spectator) that he holds all the trumps for the power play.

The climax occurs when the plucky Isabella and Angelo's rejected Mariana (Laura MacDermott) pour out their accusations and demand justice - a justice that the duke appears at first to deny. Subsequently, Miss Mastrantonio makes the most of that suspended moment when Mariana pleads with Isabella to forgive Angelo.

Mr. Papp has achieved a consistent style in his offbeat approach to ''Measure for Measure.'' The comics of the revival include Nathan Lane (a peppery Pompey), Tom Toner (Elbow, the minor-league Dogberry), and Gregory Salata (a Lucio more slick than slimy). The large cast also includes Joseph Warren (the counselor Escalus), Tom Mardirosian (the Provost), Antonio Fargas (Abhorson), and William Duff-Griffin (Barnardine).

Robin Wagner has devised a white latticework facade and fronting garden (lighted by Richard Nelson) that serve the comedy well, as do Lindsay W. Davis's slightly comic-opera costumes.

Allen Shawn composed the incidental music.

''Measure for Measure'' runs through July 21, to be followed in August by a musical based on Charles Dickens's unfinished novel, ''The Mystery of Edwin Drood.''

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