The release of Moodle 2 is the most significant upgrade to Moodle since its initial release in 2002. Much has been said about the new features, new architecture and new focus on Moodle being more 'pluggable' with a multitude of other systems. The way files are now handled in Moodle 2 from an instructors (and even Administrators) point of view, is so vastly different from any previous version, it requires a book, all unto itself. Once we delve into the new 'file system', I think you will be turned upside down. As a reference, this documentation is based on the File Picker as it appears in Moodle 2.1.