As suggested by a developer in this forum, I have modified browse.xml to give the desired behavior.
I added a predicate to the browse.xml file to check if the current directory starts with /library/ (the path I want to make the root).
<vlc id="if" param1="file.name value '/library/' 9 strncmp 0 =" />
...
<vlc id="end" />
Where 9 is the length of the path (in my case '/library/'. Also, added an entry to every directory listing to link back to this desired root.
<element type="directory" size="" date="" path="/library/" name="Media Root" extension="" />
The full browse.xml file is now:
<vlc id="end" />
<root>
<vlc id="if" param1="url_param 1 =" />
<vlc id="rpn" param1="'dir' url_extract" />
<element type="directory" size="" date="" path="/library/" name="Media Root" extension="" />
<vlc id="foreach" param1="file" param2="directory" />
<vlc id="if" param1="file.name value '/library/' 9 strncmp 0 =" />
<vlc id="if" param1="file.basename value '.' 1 strncmp 0 != file.basename value '..' 2 strncmp 0 = |" />
<element type="<vlc id="value" param1="file.type" />" size="<vlc id="value" param1="file.size" />" date="<vlc id="value" param1="file.date" />" path="<vlc id="value" param1="file.name value xml_encode" />" name="<vlc id="value" param1="file.basename value xml_encode" />" extension="<vlc id="value" param1="file.ext value xml_encode" />" />
<vlc id="end" />
<vlc id="end" />
<vlc id="end" />
<vlc id="end" />
</root>
If you have a better way, please suggest it. Another option for security is to edit the .hosts file so that only local traffic can interact with the VLC server. You can then setup point to point VPN server to encrypt, and password protect access. (Details are outside the scope of this answer.)