can never find my downloaded libraries in IDE`

knuckles:
but when start up the IDE the Adafruit_GFX file is not seen in the IDE
so the examples wont run

You don't mention the My Sketches directory, and that may be the problem. When you get the package from github or w.h.y., the library can go with all the other libraries e.g. E:\Arduino\arduino-1.0.1\libraries.

The examples from the package may go in E:\Arduino\My Sketches.

You can delve into the package or the \examples folder in the library from the IDE's OPEN menu and open the bare .ino file. When you save it, it goes automatically to its own folder in \My Sketches.

Only the out-of-the-box examples are in \Examples. All your stuff is in \My Sketches. This includes a sketch you accessed from the examples menu in the iDE and then edited.

So: two folder for sketches - yours and theirs
one folder for libraries.

You only have to go through this tedium once.......