Adding user proclibs in VS1 is kind of messy.
There is a "default" proclib defined for VS1 use. If a reader is started by a STARTF command, or if the RDR proc doesn't contain an IEFPDSI DD statement, that "default" proclib is what is used to resolve procedure references in JCL. In VS1 releases 6.7 and earlier, that "default" proclib can't be modified by the user, and is always SYS1.PROCLIB. So the answer is, yes, you have to put your procs in SYS1.PROCLIB unless you want to add a user proclib, and the only way to specify a user proclib is to start a RDR proc that has an IEFPDSI DD statement defining your proclibs (you can't use the STARTF command and get a user proclib). For example, you would modify the RDR proc to add IEFPDSI DD statements defining the proclibs:
//IEFPDSI DD DSN=SYS1.PROCLIB,DISP=SHR,DSN=BLKSIZE=19040
// DD DSN=SYS2.PROCLIB,DISP=SHR
and then start your reader using a:
S RDR,00C
command instead of a STARTF.
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