The story so far with finding a decent workable setup in our Moodle 2.0 site... This is less straightforward than I thought it was going to be.
I tried just using the moodle upload button (which should probably work, but doesn't upload anything bigger than 1mb, I suspect this is an issue with our host and have contacted them about it and am waiting to hear back). This won't really allow for the version tracking and file collaboration we need anyway.
I researched Alfresco integration, which looked good until we realised it was too costly for our budget.
I checked out WebDav. I signed up to a drivehq free account to get the file storage space with webdav capabilities online. The built in windows client is buggy for larger files (even just 7mb files) and problematic if the host has slight disconnection for whatever reason. Sky drive doesn't support it (webdav), google docs doesnt support it (neither of which will do the version managmenet we need anyway - google docs does a little bit, but not easily enough for our moodlers). In order to get past the ugly, buggy win 7 native webdav connection client, I tried other webdav clients (e.g. netdrive), all of which cannot connect to our proxy server here at my organisation.
I tried dropbox. But the client again wont connect to our proxy because of the type of authentication we use here at my organisation (which is not going to change any time soon).
I tried box.net. The moodle 2.0 plug in for it doesnt log in to the free box.net account I created. Others are having this problem too. http://moodle.org/mod/forum/discuss.php?d=168674
I tried Amazon S3, which looked promising, until I realised that I couldn't get any of the files I put in the buckets to show up in moodle. The bucket names show up in moodle but when clicked on in the file picker, they show no files inside. I have changed the files to public. They just don't show up in moodle.
Does anyone else have a solution that
a. Has an online file storage solution that tracks file versions
b. That moodle 2.0 can recognize and work with
c. That is easy for moodle users to add files into natively in a windows environment.
d. That is no or relatively low cost (e.g. box.net or dropbox type pricing)
Help or suggestions on this would be great. What is working for you? Am I asking too much from moodle and its repositories at this stage of moodle dev?
In response to your comment "I researched Alfresco integration, which looked good until we realised it was too costly for our budget" ...
There is a free open source version of Alfresco. It is known as the "Community" version.