I don't have any idea why. But when there is no DNS configured in Windows XP, on a laptop. My LabVIEW application.exe is very slow. When I enter any DNS, even a bad address (ex: 1.1.1.1). Everything comme back to normal.
In addition, do you know what the dll does? Is there a chance it may be checking or using DNS? Do you have the source VIs so that you could remove the calls to the dll to see if the behavior continues?