dxw00d:
That's not the correct place for third-party libraries. They should go, as PaulS said, in the libraries subdirectory of your sketchbook directory.
Just out of curiosity, what's the reasoning behind this advice?
Given that 3rd party libraries have, in the past, been Arduino-version-specific, doesn't it make more sense to keep the libraries within the relevant Arduino installation? By my understanding they behave the same in either case and it's just a question of whether you want to be able to upgrade the IDE and keep using the same copy of all the 3rd party libraries, or [need to] install a separate copy for each IDE version.