The mootools-filemanager is a git repository which (probably) contains local modifications to work better with Xinha.  Therefore, we want to keep it as a git repo so we can easily update.

The upstream git repository is (from http://github.com/cpojer/mootools-filemanager)

git://github.com/cpojer/mootools-filemanager.git

Simply CD'ing into the mootools-filemanager directory and performing
  git pull
should be sufficient to update.

The mootools-filemanager/.git/ directory should be stripped prior to shipping for space concerns.