It -always- helps if you post the runtime error. Is there any chance you could post it for us?
I believe the DLL will need to go in the MUSHclient\lua\ directory. You'll need to change some stuff to make the DLL load properly, though. First, use Ctrl+I, and type this in:
print('"' .. GetWorldID() .. '"')
Then hit run and close the dialog. It should spit out a bunch of letters and numbers, surrounded by quotes. Keep that handy.
Go into File -> Global Preferences -> Lua. Scroll down until you find a line that starts with "local trusted_worlds". Below that line, add this:
[the output from before] = true,
You need to replace the underlined text there with the output from before that I told you to keep handy. It should look something like this (but the string will be different)
["1ec5aac3265e472b97f0c103"] = true,
After that, go the next section starting with "local trusted_plugins", and add this exact line:
["c97ea1385bf01fd29c866716"] = true,
This time, the numbers and letters are from the plugin's ID, which we already know (it's in the XML). Then save and close the properties window. Restart MUSHclient for good measure, and
hopefully it should work.