I had this error.
Problem was that when I installed the new ediabias 6.7, the old (6.3) was still running in the background, even though I had removed it from the disk. There was a silent error that corrupted the installation and prevented many files from being properly copied.
Just making sure all versions of ediabias are closed before doing the install did permit the api32.dll file to be installed correctly.
So in short:
* check that api32.dll is in ediabias/bin (if it is, you have a PATH problem, somebody already told you)
If it is not there:
* Make sure all ediabias is off (ctrl-alt-del, task manager: ediabias should not appear in the process list)
* uninstall ediabias
* Make sure all ediabias is off again (for good measure)
* install ediabias
* check that api32.dll is now in ediabias/bin
The api32.dll file is specific for a particular version of ediabias (I tried at some point to use the api32.dll from ediabias 6.3 into 6.7, it failed with esoteric errors later down the line). Also, don't install random .dll from the internet, they are oftnn infecting you with virus.