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Terrain Builder Template Libs or Template Libraries are basically catalogs of objects.
P3D object references are kept in templates. Template libraries are .TML files which are XML text files.
When you add template libraries and it asks name, this is FILENAME or some cases directory, so do not use spaces or special characters.
On initial creation of a new template library the filename is created according to the name given to it, but on later project saves these file names are lower cased automatically (whether you like it or not).
PMC has provided full template libraries for download, see Terrain Builder TemplateLibs.
Deleting Objects from TemplateLibs.
Don't do it. Deleting whole template libraries with large number of objects takes very very long time. Unless you want to wait over half an hour do not delete objects like this.