In previous versions of Windows managing your files meant organizing them in folders and sub folders. Libraries allow you to organize your files easier wherever they are stored, for example previously to sort all your music together meant having it all in one folder (with sub folders), but with a library you can have music in multiple locations i.e. on different hard disks, on your computer and shared around your home network, but it can appear in one music library making it easier to organize and find what you want
To access your libraries, click Start, then click on your username (which will open all your personal folders) and then in the left-hand navigation pane choose Libraries
From there you can view your existing libraries (as above), or create a New Library by clicking the button on the toolbar
You can also go into an existing library by double-clicking it, from where you can view its contents and change what file locations are included in this library by clicking the locations as highlighted below
This will then show you what locations are currently included in the library and allow you to add additional locations