When adding a SCORM to a course from the "Add an activity..." dropdown in Moodle 1.9 there's no "Browse repository" button, only "Choose or upload a file". The repository button appears correctly in 1.7 (I have no 1.8 installation to test).
This problem is similar to
MDL-10036, which affected the IMS module.
I've raised this in the Forums at http://moodle.org/mod/forum/discuss.php?d=96029, but some relevant information is reproduced below.
I've done some experimenting, setting tell-tales in the PHP code so I can see when different bits of code are being triggered, and it appears that the \mod\resource\type\ims\repository_config.php file, and the value of repositoryactivate, are now only being accessed by the IMS module (under 'Add a resource') and not by the SCORM module (under 'Add an activity') at all.
Changing the value of repositoryactivate in repository_config.php makes no difference, in fact renaming the repository_config.php file so it's not found has no effect, though renaming it in 1.7 correctly triggers a "No such file or directory" error message from the PHP interpreter.
SCORMs in the repository which were added in 1.7 before this Moodle was upgraded to 1.9 still seem to work correctly, but it's now not possible to add new SCORMs from the same repository.