I'm using this structure(using WAMP server)

c:/wamp <- server root
c:/wamp/application <- contains controllers, views, models, etc.
c:/wamp/library <- contains Zend library
c:/wamp/www <- contains accessable files from viewers, such as index.php file

It works fine for me, using exact copy-paste from the quick guide.
Funny, I started diving into Zend today aswell xD

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