I am sure that Arno can give a better reply than I, but here goes.
A program like Library Creator takes a set of mdl files - these contain the actual code to create and display the object - they are not created using xml. To create a library of objects you need tol generate some xml - you can do it by hand but something like LC makes it a lot easier. This code uses a particular xml definition (
ModelData) which stores a unique ID for the object (GUID), and the name of the mdl sourcefile. A bit of xml is generated for each mdl file you are adding. Compile this xml with bglcomp.exe (which is the compiler used for this and for scenery object placement) and you get a library file which contains the ID and also the actual mdl data as well.
To place these objects you still use xml code but it is a different 'Element'. This one is called a
SceneryObject. This time the xml contains the information about object placement - i.e lat/lon/altitude and other stuff such as pitch and bank (if you want the object tilted). It also contains a
reference to the object - this time it is the GUID and the scale that you want the object to appear. Again you can create a single xml source file with lots of objects and it is again compiles with bglcomp. This time though you get a scenery bgl file and that is used by FS to display the objects where and how you want them to. Object Placer XML does this to save you writing the code by hand.
Now when FS runs it reads the placement data and uses the GUID to find the object in the library and display it for you.
The two files are both bgl files and you can't tell them apart unless you look inside them and understand the file formats.
Finally you can combine the two elements - for example put the object (using ModelData xml code) and the placement (using SceneryObject xml code) in the same file. The effect of this is that you get one bgl file containing the placement and object. In this case you can get a geographically fixed object that can only appear in one place - there are quite a few of these in the MS default libraries.
Geo-locked objects are often created directly using GMax or FSDS3.
Dunno if that helps or makes it worse
