Setting up the Arduino environment properly

I have just downloaded Arduino-1.0. It is my habit to install programs on the D: drive of my computer.
Arduino-01 is installed at D:/Arduino. When I ran the program for the first time it created a folder
for the sketch as My Documents/Arduino/sketch_jan01a/. Reading in the Arduino Development
Environment, I see the part "To install these third-party libraries, create a directory called libraries
within your sketchbook directory. Then unzip the library there. " So, I created the folder
My Documents/Arduino/libraries/. The example shows a new folder for each library.Is this correct?
I just want to get off on the right step so I encounter the minimum number of problems as I go forward.

Any enlightenment or suggestions will be appreciated.

Vic

Each library is a directory in itself containing two or more files. That directory goes inside the Arduino/libraries/ directory. So if you downloaded "coollib1" and "epicwinyeah" you would have:

My Documents/Arduino/libraries/coollib1/coollib1.cpp
My Documents/Arduino/libraries/coollib1/coollib1.h
My Documents/Arduino/libraries/epicwinyeah/epicwinyeah.cpp
My Documents/Arduino/libraries/epicwinyeah/epicwinyeah.h

WizenedEE, thanks for the response! That's what I thought but really appreciate the confirmation.

Vic