Windows 8 How do I remove "Include in Library" from context menus?

Suggest you back up the registry before doing this (standard practice for registry edits):

Run regedit, navigate to:

HKEY_CLASSES_ROOT\Folder\ShellEx\ContextMenuHandlers\Library Location

And delete the folder "library Location".
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Are you referring to folders such as "documents", "music" etc in the navigation pane?
Those are the ones, yes. I found the solution to this elsewhere:

You can delete Windows Registry entries in: [HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Explorer\MyComputer\NameSpace]