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So the operations are covered under the three classes related to event logging in admin/includes/classes, but a generic function that works with ZC 1.5.3 (I think or its 1.5.4 can't recall) and above...

$zco_notify type actions are ZC internal "gosub" callers. They tell the internal system: I am here, if you are listening (observer) then do whatever you do when you know I have gotten to this point. ...

Are all files relative to the store root or your admin? Way it looks, it is as if relative to the store root.