Need help with weird ANSI / Unicode Error [KrkrExtract]

[Maerz]

So, currently I'm trying to extract files from a game based on Kirkiri.
When I try to drag and drop onto KrkrExtract.exe I'm getting the following:

My first thought was the System locale - but that's all set to Japanese.
I tried every possible option to find out what causes the error, and I noticed the following:
With KrkrExtract.exe alone in the folder the Game starts up fine. If I copy KrkrExtract.dll too the game exe itself doesn't even start anymore except for showing me the error. 
(I hope that makes sense what I say here, just copying the .dll to the directoy f*cks this game up?)

However, I can still try to un-pack, but obviously all data is corrupted.
Can anybody help?
I thought about ditching this for good, but despite the fact I already translated everything.. :/ I thought I'd give it a shot here.

[uyjulian]

Don't copy KrkrExtract into the folder