Yes, but that is a dll path error, not related to DirectX. The trouble results from not being able to find a dll at the specified location, or in the default search paths. Try the Bug Report forum, IanM has a repair utility that can straighten this out, I think.
I had a similar problem with slightly different symptoms, which I posted under a title like MD2 Model Load Trouble, or something like that.
Anyway, look in the Bug Reports forum for repair instructions, I think there is a resolution for you there.