Libraries won't work correctly - Freezing, and flattening layers

I seem to be having trouble adding elements to the Library. Right now, when I select a Layer with groups of several layers and drag it into the library, the library turns it into a flat object (Artwork AI). When I try to add that group to a document, the layers are all gone and I can't edit it. I also notice that if I go into one of my libraries to work from it, the library panel will freeze and not let me do anything within that library or even go out to my list of libraries. I have to close and restart AI to get the libraries panel to function again. Does anyone know how I might fix this, or the best place/forum to go to get troubleshooting help? Thanks!!