Ville, you must give this a try!
http://delphi.about.com/od/windowsshell ... 12103c.htm
It's about embedding dll's in a delphi application...
The DLL is extracted "on the fly" and is put in the same path of the exe... I know it's not so much "clean" but...

well, if we get a DLL embedded, actually I think it's gonna be a BIG step forward for lots of things. Plus, i know how to write (quite) good C code, but I don't know anything about Delphi. By embedding dlls, I could contribute the project far more easily... just for example, I would likke to contribute implementing collision between rotated 3D boxes... but I could try doing it only in C...
Plus, if you are interested, I will keep searching for a little bit more: it should be possible to embed the DLL without the needing of using the "temporary" extraction of the file, using the compiled c files (obj instead of dll) and static linking to them...