Re Hot Potatoes and Moodle 2.1.
Hot Potatoes is no longer part of the regular Moodle distribution. You have to download it and install it to your Moodle 2.1 site.
1.- get it from Gordon Bateson's site here.
2.- unzip and install on your moodle 2.1 site (copy the hotpot folder to your moodle/mod/ folder).
3.- Visit the Notifications page for the install to take place
4.-view and possibly make changes to the settings on the New settings - HotPot page
B.- Using a HP file as an Activity in a Moodle course
Now you can add a HP activity to your moodle course.
Once you have installed HP on your moodle site, go to a course, get into Edit mode, and click the Add an activity dropdown list, HotPot.
Then, follow the instructions.
C.- Importing questions from HP
In the zip file that you have downloaded from Gordon Bateson's site, copy the question\format\hotpot\ folder to your moodle/question/format/ folder. This will add an "import from HotPot" choice in your Import questions from filedialog. See attached screenshot.
Unfortunately, it seems that this Import from HP feature only works in Moodle 2.0 at the moment, not Moodle 2.1.
For further information about the Hot Pot module in Moodle you might like to visit the dedicated HotPot forum.
I hope that helps,
PS.- @Tim, do I get my "Particularly Helpful Moodlers badge back on this one?