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I think you want to add the parent directory of 'libs' to the Python Path in Wing's Project Properties.
Of the settings you mentioned, only Initial Directory can affect module loading in Python, if '.' or '' (representing current directory) is on the Python Path, which it may not be in your case. You can see the Python Path with 'import sys; print(sys.path)' in Python.
Default Directory Policy controls how Wing selects the starting directory for file/directory browsing dialogs and has no effect on how Python is run.
Project Home Directory controls how Wing shows files in the Project tool, since paths are shown relative either to the location of the project file or the selected directory. This also has no effect on how Python is actually run.