Note: Engine availability is platform dependent. See the SAS documentation for your operating environment. Also, specific SAS products provide additional engines. Default Version 8 engine V8 (or V7, ...

I don't have SAS installed at work or I would check, but I'm wondering if you have tried calling your library something other than library? If that is a reserved keyword that would cause a problem.

Note: Before using sequential engines, read the information about sequential data libraries in SAS Language Reference: Dictionary. Reading and Writing SAS Files on Tape You can write SAS files ...