Here by library I mean the one which you find in windows 7 which is one of the mainly seen component of windows explorer which usually includes the libraries - documents, music, videos and pictures. The word library is quite misleading and not frequently used. Most people never utilise this function and just skip it.
It can help in organising files. You might not know that more libraries can be created. To do this just go to the libraries menu and look for the option new library option in the top left corner of the screen which is displayed like the other several options which are seen in windows explorer. After selecting it a new library icon appears and you can name it just like you do to make a folder. Thats all you need to do to make a library. Its easy to delete libraries, You can delete them as you delete folders. You can make several more libraries and arrange data like you need. After this open the library and you will see an option called include a folder. Select it and you can add files and folders to it and make it easy to access differrent files without using shortcuts.