Existing data is flagged with LIB_APPEND_TAG and all_local only has an option to only operate on un-flagged data.
If you append an object thats linked to a material alredy linked in your scene, the material will not be made local.
So at worst youll need to make local some of the datablocks.
This is fairly simple and though my tests show it to work, do some tests on your own libraries before assuming its problem free.
scripttemplate_mesh_edit wasnt updated with PyAPI changes and moved some functions into generic places.
* stopped bpy from importing automaticaly as decieded in the meeting.
* removed Blender.Main, since we agree it will be called bpy, renamed files also.
* updated epydocs from this and last commit.
* updated scripts to use bpy.*, and bugfix's for widgetwizard