The library or rather file does appear lower down uder Files\ Drivename\ SASWORK\ Folder
SASWORK is the top folder for session specific temporary files. Only the user should have access to a specific subfolder under SASWORK (OS permissions) and if there is no crash of the session then this folder will get fully removed when you terminate the SAS session (for the crashed ones there is normally a cleanwork utility job setup which removes such left-overs on a regular basis).
The automatically assigned libref WORK points to the session specific subfolder under SASWORK and to my knowledge WORK is the one location that can't be metadata bound.
The library still appears in Libraries under SASAPP in EG
I assume that's because it's not pre-assigned (library node not yellow) so you just see the metadata definition and once you try to assign it an error will be thrown.
Test with a library which points to a "permanent" location on your file system.
http://support.sas.com/documentation/cdl/en/seclibag/66930/HTML/default/viewer.htm#p1n6n3za1i6vqdn1t...
Things worked like a charm for me when I was testing. If it's not working for you then post the details with screenshots of your steps defining such a metadata bound library and what's not working/the error thrown.
