I had the file system repository working in 2.1, but after an upgrade to 2.2, teachers no longer can access the file system repository. I've checked the teacher role, and even recreated the repostiory, but I cannot find the solution to this permission problem. If I log in as a site admin, I can access the repository, so I think it must be permissions related, but I can't figure where else to look.
Is it possible that the default capabilities assigned to the Teacher role have changed to disallow File SYstem repository access? That might be one place to look.
Moodle is getting more and more Byzantine!
Well, that turned out not to be the problem, but it got me to thinking about other possibilities. Last semester I edited the authenticated user role to prevent student access to the File System repository. I then edited the teacher role to allow access.
By allowing the authenticated user to access the repository, the problem for the teacher role is fixed, but now students have access to it again. I will have to dig a little deeper to find out how to shut of student access again. Maybe this is just a bug that would be fixed by updating to the lastest version of Moodle, but I haven't investigated that possiblity yet.