The error comes from ImgBurn, but it's not really ImgBurn's fault.
I ran into a similar symptom running ImgBurn under WinXP 32-bit. In my case, the missing dynalink error dialog box on ImgBurn startup was caused by a copy of the Win9x-specific SvrAPI.dll in the c:\Windows\system32\ directory.
SvrAPI.dll dynalinks to the Win9x Kernel32.dll's ConvertToGlobalHandle() API. But the Kernel32.dll of NT-based Windows OSes, like WinXP and Win7, doesn't export ConvertToGlobalHandle(). So if you try to load the Win9x SvrAPI.dll on an NT-based Windows OS, you get a missing dynalink error dialog box. Removing c:\Windows\system32\SvrAPI.dll, which is not used under NT-based Windows OSes, fixes the problem.
Under Win9x, SvrAPI.dll exports the subset of the Net...() APIs available on that platform. Under NT-based Windows OSes, NetAPI32.dll exports a much fuller set of the Net...() APIs. ImgBurn, correctly, attempts to explicitly load some OS-specific DLLs via LoadLibrary(), like SvrAPI.dll and NetAPI32.dll.
This issue is not really a bug in ImgBurn since SvrAPI.dll should typically not be installed on an NT-based Windows system. However, ImgBurn could work around this issue by attempting to load NetAPI32.dll first and only attempting to load SvrAPI.dll after NetAPI32.dll fails to load. It looks like the explicit loading of SvrAPI.dll was added in ImgBurn 126.96.36.199. ImgBurn 188.8.131.52 does not attempt to explicitly load SvrAPI.dll, and so does not generate the missing dynalink error dialog box.
LIGHTNING UK!, thank you for a really great program. ImgBurn's combination of power and ease-of-use is a testament to its excellent design.