This answer was copied from the Electric Quilt web site.
The Quilted Diamonds CD contains EQ projects from earlier versions of EQ. They are not libraries, and therefore can’t be linked.
The easiest way to use the blocks from Quilted Diamonds projects in EQ7 is to import the blocks from the project, and save the blocks in My Library.
First, create a My Library space for the blocks.
Follow along on page 61 in the EQ7 User Manual.
Click LIBRARIES > Block Library.
Click the My Library section, then the Add Library button.
Type Quilted Diamonds (or some name for the library, just remember what you call it).
Start with 8 styles. (You can change this at any time if you need more.)
Next, you want to import Quilted Diamonds blocks into the Block Library. Be sure the Quilted Diamonds CD is in the CD drive.
Follow along on page 52 in the EQ7 User Manual.
The Block Library is still open, so click Import > From Project.
Change the “Look in:” box at the top to look in the CD drive.
Change the “Files of type:” box at the bottom to show “Previous EQ Versions.”
Select the first project and remember its name.
Click Open. This will display all the blocks in the project in the library.
Now, you need to copy and paste the blocks from the import section into the library you created.
Click one block to select it, then press CTRL+A on your keyboard.
Click the Copy button.
Click the My Library section.
Click the Quilted Diamonds library and select “Style 1.”
Click Save Library, then OK.
Repeat steps 2b - 3f for the other projects. Put project 2 in style 2, project 3 in style 3, etc.
If you wish to rename the Quilted Diamonds library styles to match the projects, see page 145.