Best administration of the library?

I am still not quite sure how to make the best use of the library.
OK, for large collections there is no way around it.
So ticking Tools>Options>Library>Activate library is mandatory for that.
But what about the folders?
If I do not set that option and define a folder, does that mean that any file loaded by MP3tag will be stored in the library?
If I set a folder(or several) does that mean that only files from these folders find a record in the librar?
What happens to a library that was created initially with a certain set of folders but then the set gets changed so that none from the previous list of folders is still in the new list?
If I substantially modify the settings of the library (like defining a new list of folders) is it better to delete the whole library and start from scratch or is it better to use the "Optimize library" function?

  1. If the Library is enabled and no directories are configured, all files that are loaded by Mp3tag are included in the Library.

  2. If the Library is enabled and directories are configured, only files from those directories are included in the Library.

  3. If the list of directories to include changes over time, files that are not in one of the configured directories are removed when closing Mp3tag or when "Options > Library > Cleanup Library" is performed. Files that were loaded from one of the configured directories but were later removed from outside of Mp3tag are only removed from the library via "Cleanup Library".

  4. There is no preferred way to bring the library to a clean state. I'd tend to recommend "Cleanup Library", because it doesn't imply that you need to fiddle with the settings on a file-level basis. However, Mp3tag is designed to create a new database if the Library is enabled and there is no library file.

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Thank you. Makes it much clearer for me.