Arunino libraries on a Mac - how to download and install for the LOL shield

My Arduino on Mac OS 10.5 works fine for the "blink test", but I have trouble making my next project, the LOL sheild, work. I get an error: 'LedSign' has not been declared

I suspect the LOL shield basic test program references several other libraries such as Charliplexing.h and the avr libraries. My question is, where do I get the AVR libraries and where do I put all these different libraries in Arduino? Many thanks,

On a whim, I clicked on the Arduino app to open package contents, moved my library folders into the libraries directory of that package, and now my program works. Perhaps I missed this explanation somewhere.