I don't know where to put the arduino executable
Anywhere you want. When you install the Arduino application, it asks you for the parent directory name. It then creates a folder there called arduino-x.x.x, where x.x.x is the version.
In the folder that it creates is a libraries folder where the libraries that Arduino supplies go. It is NOT where your libraries go.
When you run the arduino.exe application, and create a sketch, it is stored somewhere. You can see where by looking at the File + Preferences dialog.
In that folder/directory. you should create a libraries folder, and install libraries that you download there.
If you continue to have difficulties, uninstall 1.0.1, and install 1.0. The 1.0 version does consider missing include files to be a fatal error, which makes troubleshooting so much easier.
If that still doesn't work, running a real OS might be necessary.