I have put the libraries in the location as mentioned by you. Have a look at the path below.
C:\Documents and Settings\SR Lab\My Documents\arduino-1.0.1\libraries\LiquidCrystal
Probably you are referring to this path also. But still it doesn't run. I have restarted the IDE even my computer. But the problem is remaining as it is. Now, I am trying with serail LCD.