Hi there Ravi,
Sounds like you've got a challenge on your hands there. We run eSIS as our student management system and haven't yet tackled Moodle integration...
We're just having issues with students being able to easily upload and insert images into wikis. We'd like them to be able to upload images just as teachers do (by clicking the 'Insert Image' icon and then browsing for their image and uploading it. I got the impression that this is what you achieved above.
Do you have an alternative suggestion?