Where should I place the Hydraulic Conduit library for my SUDA conduit prototypes?

HI,

where in my workspace/workset should i be placing my Conduit Engineering LIbrary.xml for my prototypes? 

In Conduits.dgnlib I have my prototype diameters as a dropdown option on the element selection feature definition window (when i go to place a conduit as a test), but when I load up a new drawing (eg New.dgn in that same workset those same conduit feature definitions are available but do not offer the prototype diameters dropdown in the element selection window.  In the same New.dgn, properties of Conduits.dgnlib conduit feature definitions when right-clicked in Project Explorer (ie Standards-->Libraries-->Conduits.dgnlib)  say 'prototypes unavailable' in the element properties box (shown below). where should the engineering library xml reside?  is this the issue?

EDIT: If I go to the Conduit Catalogue after creating New.dgn and the hydraulic model, my library has little red x's against each entry (as below left).  If i go to connect to my Engineering library (as below right) the library is then synced and i can add them back into any conduit feature def I bring in.  what is preventing this sync?  is this why my f defs won't show prototypes?