Use link (i.e. link.exe) instead of lib for two purposes:
lib\wcecompat.lib: lib $(OBJS) makefile @lib /nologo /out:lib\wcecompat.lib $(LFLAGS) $(OBJS) lib\wcecompatex.lib: lib $(OBJS) makefile @lib /nologo /out:lib\wcecompatex.lib $(OBJS)
... and rename the targets to wcecompat.dll and wcecompatex.dll respectively.
However, it does help you in creating the DLL, but it does not contain any changes to export the functions that you might need from this DLL. Also remember that dlls with code have a DllMain function as an entry point (although it is not exported as such).
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