I just recently stumbled upon the network. I was in finder and clicked on network, it opens up and says library and servers. I was just curious what this was and if I could do anything cool with it???
It monitors network shared folders that may be accessible to you. If you have another machine on your network with file sharing enabled, you may be able to transfer files between the two machines.
library and servers are just aliases that point to invisible folders on the root of the main drive. in Leopard these are not there anymore and only show shared computers.