Could you check if it is in your Psycle directory and if so, remove it? This way it will try to use the one in the system.
If it isn't there, then try reinstalling psycle, installing the "microsoft dll's" from the options to install. This just copies them to psycle dir, so it won't make modifications to your system.
Since psycle doens't replace the file in the system, i don't understand that it bugs about it not being valid.
<[JAZ]> Pa pi pa pa pa pi pa.... ;ĚD