Here's a link to what one of the Administrators had to say.

http://www.planetmule.com/forum?topic=40.msg113;topicseen#msg113

I for one would love to see local play brought back to M.U.L.E.  Much easier to play with the kids that way.

The file might have been become corrupted during the transfer.  Have you tried downloading it again?  If not, give that a try.