Created Unassigned: VLD 2.5 causing module load failure [10602]

I have installed VLD 2.5 in a module of a Win32 project I am working on in order to track down some memory leaks.

I have added the vld include and lib paths to the project properties and also added vld.h to one of the source files in the module and built it as Debug.

When I launch the app I get a message in my apps log window saying:

Failed to load x:\Actions\SoarRipAction.dll, error 14001 (The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxstrace.exe tool for more detail.

I tracked this down to not having copied the manifest file into the target directory along with the two Win32 vld dlls (vld_x86.dll and dbghelp.dll).

This allowed the module to load but the cause the main application to crash with:

First-chance exception at 0x77BF73C5 (ntdll.dll) in XiFlowServer.exe: 0xC00000FD: Stack overflow (parameters: 0x00000001, 0x07202FFC).
Unhandled exception at 0x77BF73C5 (ntdll.dll) in XiFlowServer.exe: 0xC00000FD: Stack overflow (parameters: 0x00000001, 0x07202FFC).

Here are the running threads:
Not Flagged 0x000020F4 0x00 Main Thread Main Thread XiFlowServer.exe!CCatfishServerApp::LoadCatfishActions Normal
Not Flagged > 0x0000243C 0x00 Worker Thread msvcr120d.dll thread ntdll.dll!77bf73c5 Normal
Not Flagged 0x00001484 0x00 Worker Thread ntdll.dll thread ntdll.dll!77b4df2c Normal
Not Flagged 0x00002448 0x00 Worker Thread ntdll.dll thread ntdll.dll!77b4df2c Normal
Not Flagged 0x00002520 0x00 Worker Thread combase.dll thread combase.dll!776a9ec9 Normal

And here is the stack trace for the thread that crashed:
> ntdll.dll!77bf73c5() Unknown
[Frames below may be incorrect and/or missing, no symbols loaded for ntdll.dll]
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]
vld_x86.dll!0562ada3() Unknown
vld_x86.dll!0562e549() Unknown
[External Code]

If I remove/disable the vld.h include line, then the application launches and behaves normally (except for the leaks I am trying to track down!).

Any suggestions as to what is going wrong here?

Thanks in advance,

Peter Young