My bet is that MarianneR is on the right track. Can you categorically confirm that in the Poser screenshot you selected the Downloads library, and not the main Poser library?

If so, try hitting the 'up one level' button, then closing and re-opening Poser.

Edit: also, check (in Windows Explorer) what folders are present in the path: ... \ Poser 7 \ runtime \ libraries \ character

"If I were a shadow, I know I wouldn't like to be half of what I should be."
Mr Otsuka, the old black tomcat in Kafka on the Shore (Haruki Murakami)