The understanding of the difference between absolute and relative addressing is vital.  Relative is like getting GPS navigation instructions from where you are to where you want to go, therefore it alway works no matter where you are.  Absolute is like getting instructions that start at the largest airport in your region and going from there,  if you aren't actually at that airport the instructions are useless.  Studio and Poser have been told where your library or libraries start so files for them can use relative addressing.  If you add a "Content", "My Library" or any other folder as the top level folder you brake relative addressing so don't do it.  The examples above should read as follows to be proper:

Props | Kutter | Books

Runtime | Textures | Kutter | Books