Yes, the libraries can be dragged to another volume without having to reinstall. Just move the Ivory Items folder to the new location. Then, all you need to do is update an alias that needs to point to this folder. The alias is called 'Ivory Items', and in OS 9 is located in:
/System Folder/Preferences/Ivory Preferences/
and in OS X is located in:
/Users/{Home}/Library/Preferences/Ivory Preferences/
Click once on the alias, press Cmd-I for Get Info, click the Select New Original button, and select the Ivory Items folder at the new location.