I have just found a new tutorial article written by Richard Grimes that explains the whole side-by-side DLL situation with the runtime library etc.
The content of this article is incredibly valuable. I hope that the MSDN help is updated to reflect a lot of the information in this article.
Here it is:
http://www.grimes.demon.co.uk/workshops/fusWSThirteen.htm
Thanks go out to Richard for investigating this area with a fine tooth comb and exposing what is happening under the covers.
Ted.

Side-by-side DLLs: a must read for any unmanaged Visual C++ 2005 user
vbnm
Paul Rayner
Thanks for alerting us. And, yes the quality of the information is excellent.