When running tests, the base location for relative paths is the directory the tests are run out of. If your directory structure follows the traditional distribution layout:

dist_root_dir
    |
    |-lib/
    |-t/
    |-etc/
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...and you run your tests while in the root directory of the dist, then remove the use lib '../lib', and change the path to: lib/Pod/Simple/Select.pm. As is, (again if you're running tests from the root dir), your path is going one level *above* your distribution's root directory, and looking for a lib/ dir, which almost certainly doesn't exist.