hi rob,
thanks for pointing out the issues with outdated libraries. with 60+ libraries listed in the libraries section, it becomes more and more difficult to keep track of libraries that don't work with the latest processing release and this is why reporting broken libs helps very much to identify them.

outdated libraries
end of last year,for the 1.0 release, library makers of listed contributed libraries have been contacted and informed about the changes for said release. we got good feedback from library makers, for some libraries it wasnt possible to include the necessary changes and we had to take them out from the list. i tested most libraries, not extensively, but for some of them the prerequisites didnt allow for a quick check. that is why reporting broken libraries is very much appreciated - but also frustrating for a user if a library does not work.
there is a post library does not work anymore where broken libraries can be reported. when reporting a broken library it would be great to add information which system and processing version has been used, what errors occur, and any other issues that are related to the library not working.

instructions, where to put libraries.
since processing's 1.0 release, libraries are located inside the libraries folder in processing's sketchbook folder. instructions where to put libraries are described on the reference/libraries page and on the dev.processing.org/libraries page. unfortunately not all library pages/downloads have been updated with this information - here we rely on the author of the library.

installing a new library
(the below steps are based on system osx 10.4, processing 1.0.3)

(1) inside processing go to preferences and get the sketchbook location
(2) open a new finder window on your desktop and navigate to above sketchbook location
(3) check if your sketchbook folder contains a folder libraries, if not, do create one
(4) quit processing
(5) the library you downloaded should have the following structure (assuming the library is called ContributedLibrary)
ContributedLibrary/
ContributedLibrary/library
ContributedLibrary/library/ContributedLibrary.jar

some libraries might also include a reference, examples, and/or src folder
ContributedLibrary/examples
ContributedLibrary/reference
ContributedLibrary/src

(6) copy the folder ContributedLibrary with all its content into the above(3) libraries folder
(7) start processing
(8) under 'sketch->import Library' you should see the ContributedLibrary listed next to the already existing ones.
(9) choose ContributedLibrary and the import will be added to the currently active sketch

(if folder ContributedLibrary contains an examples folder, you can open these examples by navigating to
'File->Sketchbook->libraries->ContributedLibrary->examples')


hope this helps,
andreas