I installed XOOPS on my hosted server, however I intalled it in a temporary directory. I did this so I could play around with it, without taking down my existing site and figure out if I want to use it. How difficult is it going to be to move it to the correct directory, so the XOOPS site is active? Am I going to have to reinstall it and the additional modules?

It's set up in like www/textxoops/ instead of in www/

Shoud I just put in a redirect at the www when I'm ready to use it? I'd rather not do that as the test directory shows in the webaddress and looks a little poor.

Thanks in advance.

Just move the files, edit mainfile.php to reflect your new physical and virtual paths. All relative links will change automatically, any internal hard links would need to be manually changed.

Although this is a little overkill for what you are doing, I would suggest seeing this
Faq Page also.