1. Browse to C:\Windows\System32 folder and file this file dwmapi.dll
2. Rename this file from dwmapi.dll to dwmapi.dll_old
Now you can run your application without any hassle :)
The DwmAPI.dll file is a Direct X related file that is used for vista. Allow me to elaborate on WHY it's used for vista, however.
The file that you're having problems with is a Direct X file that is part of DirectX10. This is why some people have this problem after installing graphics cards, and some have it after installing DX10 Games, and applications that are developed with the DX10 A.P.I in them (I.E. Firefox 3.5 - They had a faulty install on the first release of 3.5 that put this file onto XP machines.)
This file MAY, or may NOT hurt your system. That's all dependent on if you have a DX10 compatible Graphics card.
If you do NOT have a DX10 compatible graphics card, the best solution for you, is to go ahead, and do it what I have mentioned above in two steps.