Currently, the SM2 path is configured manually with a Drupal variable variable_get('sm2_path', 'sites/all/libraries/soundmanager2'). Implementing hook_library_info() would autodetect the library path and generally make the library setup more robust.

This is particularly useful when the location of the library is outside the sites/all/libraries path, such as an install profile path: profiles/profile_name/libraries.