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You must rename the material appropriately when importing from the library. Do not leave it as the default!
Additionally when you assign textures make sure that you map to the appropriate network drive, i.e. R:\ and the TGA file in MapsSource!
Open the Material/Map Browser and click on the downward arrow in the top left hand corner.
Select Open Material Library... and choose T:\3dsMax_Material_Library\S397_Material_Library.mat file and press Open.
The library is now available for use.
In a default material slot, select the top level which will give you a Multi/Sub Object material populated by all the available types.
Use this for reference only! Do not modify this multi-sub. You should copy these materials into your own multi-sub. See the next section.
If you have already set up a Multi/Sub Object material, you can populate the individual slots by selecting the specific shader you need.