Well, it WAS me missing something! No surprise there.
http://moodle.drupalgardens.com/article/tue-06152010-1918/ftp-files-moodle-20-repository-api
After watching this video about 10 freaking times, I finally figured it out.
I had not enabled the file system. NOW I have "Repository" as an option in the course menu.
Thanks for your help.