I think what Jay is saying is:
1. Go to your AJAX_image_swapper_v3.1.1 folder
2. Find the directory called mootools_on_admin
3. Inside that directory there is a directory called admin, inside admin there is a directory called includes, inside includes there is a directory called javascript.
4. Inside javascript there is a file called mootools-release-1.11.js
Make sure that the mootools-release-1.11.js (along with the uncompressed folder if you wish) is indeed in your admin -> includes -> javascript directory on your site.
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