I just tried it under Labview 7.1 and it ran fine. Have you tried a mass compile of the library? You will find this under "Tools", "Advanced", "Mass Compile...". Select the directory with the library lvwutil32.dll and press the "Select Cur Dir" button. Finally, click on the "Mass Compile" button on the screen that pops up.
You have to do this because the dll was compiled under Labview 4.1 (or similar vintage)
I've attached the test VI that I created for your info.
Richard