i have no idea about the second questions. part 2
but about part one:
She saw the boy with the binoculars:
a- she saw the boy with the binoculars SHE has in her hand.
b- she saw a boy and the boy had a binoculars in his hand.
i read the newspaper in the library:
a- i read the newspaper which is in the library.
b- i bring the newspaper to the library and read it there.