I'm not sure exactly why this is happening, but it seems that the values of $form are not being properly sent from mod/hotpot/lib.php or received by mod/hotpot/mod.html
One possibility is that your hotpot/lib.php file is corrupted. Can you open it with an editor and see if all of the lines of code are there? There should be approximately 225 lines.
Also, make sure that the permissions on the files in mod/hotpot/ are set to allow 'read' for all users.
If you can't get it to work, please establish a teachers' account for me and tell me the username & PW offline so that I can take a look myself.
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