Some checks for return codes are missing.
Examples:
Would you like to add more error handling for return values from "GetModuleFileName" like in the function "WinMain" and from "realloc" in the function "make_argv"?
http://dm2.svn.sourceforge.net/viewvc/dm2/trunk/dm2/DM2EXE/DM2.c?revision=42&view=markup
http://dm2.svn.sourceforge.net/viewvc/dm2/trunk/dm2/tools.c?revision=17&view=markup