I am trying to make the File System Repository work. After much searching and testing I have conconcluded that there must be a bug in the File Picker OR I have missed a setting somewhere.
The File System Private Instance Repository is not visable in the File Picker in a course. I have tried to make it work both as the admin and the editing teacher.
The File System Common Instance Repository is visable and works OK.
I have a lengthy description of this problem outlining the steps I took and the settings I changed in the Testing/QA Forum at http://moodle.org/mod/forum/discuss.php?d=157839#p692053.
If this is not a bug, please tell me how to make this work.