Urgent:static and dynamic linking of c-runtime

I am invoking a C win32 dll from a c++ client.
And i get a crash when i try to malloc memory in the dll,something like
extern "C" __declspec (dllexport) char* CreateString ()
{
   char* pString = (char*) malloc (16);
   strcpy (pString, "Hello, world");
   return pString;
}

Now i understand that the problem may be solved in the c-runtime is linked dynamically into the dll.Since i am not conversant with MS VC++ dev environment,can someone guide as to how I confirm the following
1.whether my DLL is statically/dynamically linked to C run-time.
2.How can i convert in to link dynamically,if it is not.