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Is your SW installed on your computer or on a network server and is your license on the server or your computer?
Do you have administrative privilages to your computer?
Do you have wright privilages to the network?
Could be any of these.
In addition, you may want to go into Tools\Options\Sytem Options\File Locations and see where that is pointed currently...
Because we are using laptops here, I copy a library of my making to the "My Documents" folder for the user. Then I use the File Locations to point to that location. You can add a folder by selecting the library icon with the asterisk star too...
I tend to keep my library seperate from the SW one.
Have you tried sving your saving your annotation as a Favorite first? This would be a file with the extension ".sdlnotefvt".
Once this has been done, you can drag & drop the note in the Design Library.
The New Folder icon is greyed out because the SolidWorks Content folder is read only. It is for downloading content from SW.
Use the icons to the left of the New Folder to add to the Design Library section.
Thanks to all for your help
My problem happened because in the options:
Tools\Options\Sytem Options\File Locations
the path for the design library was not set at all.
I pointed the link to the correct folder and it is now working. I also created my own design library.