Dan,
The CVI Create Distribution Kit feature can only include DLLs for libraries that are installed by default with CVI. Since NI-DMM is installed separately, CVI will not include it automatically in the distribution kit.
The reason your program fails to start with the DLL not found error is because you are "statically linked" to the import library for the NI-DMM DLL. This means that Windows will try to load the NI-DMM DLL immediately when your program starts.
The simplest solution is to install NI-DMM on the target machine, as you have found.
Another possible option is to load and call into the NI-DMM DLL dynamically. One way to do this is manually via calls to the Windows SDK functions LoadLibrary and GetProcAddress using function pointers. Another, much easier way to do this, is by opening the NI-DMM header file in CVI and selecting Options >> Generate DLL Import Library and including this Import Library in your project. You may need to do some fiddling to make sure that CVI uses the import library you create instead of the normal NI-DMM import library, otherwise your program will still be statically linked to the NI-DMM DLL. Note that there are some limitations to this method, such as not being able to call variable argument functions, but otherwise it works pretty well.
Hope that helps.
-Jeff
NI