Firstly, Apologies if my hijacking the thread comment came across worse than I intended - it just cause a little confusion maybe only for me

When it says run installdriver in the \win32 folder, its means run the exe that is in the win32 folder inside the zip file. it does not matter where you put it on your PC, so long as InpOut32.dll is in the same location. Usually I would put these files alongside (with) the software that uses it - i.e, in the same folder as your application.
If you intend to distribute the application, you may want to create your own installer that loads the driver (or calls InstallDriver.exe) so the user does not have to worry about that! The source code for the DLL and InstallDriver.exe is available on my website also!
Thanks,
Phil