I think I understand what you are asking, because I just went through this and wondered the same things myself. The "Library Update For My NY Studio Vol 1", from what I can see, updates the NY-Avatar library, and does not show up as a separate groove library. So, you won't see a groove library titled "NY Studio Vol 1" in your groove list - at least I don't.
The SDX DVD installer is only necessary if you have purchased additional SDX titles but they won't install using the installer on the DVD for some reason. If you don't have any additional SDX's at this time, don't worry about it.
One other gotcha that tripped me up - don't install Toontrack Solo or Toontrack EZPlayer Pro from the install DVD - get the updated versions from the Toontrack website. NOTE - the Toontrack EZPlayer Pro update will not show up in your account until you register the serial number, so be sure and do that first. Otherwise, if you do like I did, you end up with a 64-bit version of Toontrack Solo (because its update will show up in your account) and a 32-bit version of EZPlayer Pro, and Toontrack Solo 64-bit won't recognize the 32-bit version of EZPlayer Pro, which left me scratching my head for a time.
One last thing - the instructions in the README for the free EZPlayer MIDI library didn't work for me - I had to manually copy the [link=mailto:001@EZP_FREE_MIDI]001@EZP_FREE_MIDI[/link] folder into the "X:\Program Files (x86)\Toontrack\EZDrummer\Midi" folder, and then - VERY IMPORTANT - remove the encryption (so it doesn't show up green in Windows Explorer) from the folder and all items underneath. When mine was still encrypted it wouldn't show up in my groove library.