Sorry, it is my lack of understanding of where to put things which is not helping.
If you see from the screen shot, I do have that SKETCH, but it is up a few levels.
Somewhere I read that the libraries need to be in "sketchbooks/libraries/....."
So that is where I put them.
I didn't resolve where to put the actual SKETCH, so I just put it in the arduino directory. Yeah, they probably should go in the sketchbook directory but I haven't got my head around the names/paths part yet and obviously am still having trouble.
So reading the reply, I need to put the alarm sketch in the sketchbook directory and compile from there - standbye.
Well, that didn't work. Same error. This WProgram.h file is still missing.
Here is a better layout of the directories.
You can see the arduino/sketchbooks/ and the alarm clock directory (the bottom arrow) and the libraries with the PHI libraries in there.
I'm really not getting the directory layout part I know.