My students submit their essays in Moodle, and I'd like to comment on the essays and then re-upload the essays so that students can see the comments. Is there a practical way to do this?
Actually I hadn't. Thanks. Will this allow me to edit an uploaded word document and then repost the edited word doc?
Yes, in a word 
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Of course - you could also use the online text assignment if your students would like to type their responses directly into Moodle.
Watch Mickey Mouse here Of course - you could also use the online text assignment if your students would like to type their responses directly into Moodle.