Thanks for the question

Visual Micro uses the same library locations that are published by Arduino for use in the Arduino Ide. This is an example of the reason why Visual Micro is compatible with the Arduino Ide. It allows the vast reference resources on http://www.arduino.cc to be used as a development guide.

By default the library locations are [arduinoide]/libraries and [sketchbook folder]/libraries although some versions of Arduino also allow libraries below the hardware folder. Visual Micro allows for all these locations.

The sketch book folder defaults to documents/arduino therefore user libraries will be placed in documents/arduino/libraries

Your libraries, file names and folder names must conform to the Arduino specification. The most important and useful rule to follow is that the name of a library folder must be the same as a .h file within the library folder.

For example

documents/libraries/libName/libName.h

You can override the sketch book folder in the Visual Micro Ide > locations window (see the optional location below each applications path). Or you can alter it in the Arduino Ide and then click "tools>visual micro>reload tool chains"