Finally fixed this.
I finally got it to ask me to create a new library. When I selected the same location I configured the first time around, it said it was unable to create the library <- a MUCH better message. I figured out that Calibre can't create a library in an existing folder inside c:\Program Files in Windows. I switched it to another folder, and it was able to create the folder.
Overall, a bad first time experience and possibly enough to drive potential users away. First time usage should be much smoother. This could be accomplished with better messaging saying a first-time library could not be created in the location chosen.
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