If anyone gets this message and can't get rid of it, I think I have the solution.
I had a previous copy of Directsoft32 on my laptop when I upgraded to Directsoft5. After installation, I recieved the error: Error 1006: module 126 failure, can't find c:\directsoft5\projects\knowbase\kb430c.dll This is a Microsoft error. I followed the proceedure in FAQ 126, uninstalling, defraging my hard drive, reinstalling, to no avail. Same message. I noticed when I looked in the folders that the file was located in: c:\directsoft5\projects\knowbase. But on another machine, there was no knowbase directory in the projects folder! On the machine that works properly, the file should be in location: c\directsoft5\knowbase (not in Projects!) To correct the problem, I uninstalled again, then reinstalled. When it asked me if I wanted the projects folder in Directsoft32 to be transferred to the Directsoft5 directory and used as a default, I said, "NO!" This placed the files in the correct directory and I am now able to use it without the error. Hope this helps anyone with the same problem. It drove me crazy for 2 days before I found it. Hope you find this fix in a few minutes.