Hi Robert,
Wow you are going way back there with a P3 running CCSv1! Either you have a bad install and can try reinstalling or the cgtools folder is in a different folder than what the project is expecting.
I would expect the cgtools folder to be in <CCS INSTALL DIR>\c6000\cgtools. Did you try searching the entire install directory for the lib?
Sorry I can't help you more. I don't even have access to that old CCS version so I can't check myself.
ki