Unable to run oracle report contains attached library

Oracle Application server 10g
Oracle report is using a library. When I'm attaching library it asked me if I want to remove path.
It works with option "NO" - not removing library, but it does not work if I select "YES". and I got the Unable to run report error.

although I already set the library path in the following places:-

• REGEDIT FORMS_PATH to C:\DevSuiteHome_1\forms;
• REGEDIT REPORTS_PATH to C:\DevSuiteHome_1\forms;
• default.env file FORMS_PATH to C:\DevSuiteHome_1\forms;

Some things to confirm:

• Ensure the library is present in the same directory as the reports - without the path info, the library is picked from the same location as the reports
• Ensure the environment variables are set correctly so that the Reports engine is looking at the right directory to pick up the libraries