Microsoft recommended to me when I spoke to them to have to write a second application, which you manifest as requiring administrative privileges. You use this application to deploy your file from a safe location (such as the users programdata directory) to the program files directory (Note that if your DLL isn't signed then this is a massive security hole as a virus/malicious user could manipulate the file before your function call).
Your non administrative app can call this application which will trigger UAC. People who understand UAC won't care and happily will click your application. Those who hate it will have switched it off. The call to start the new process (which required admin privileges) will throw a win32 exception if the user cancels the UAC dialog so beware to catch that.
The problem in vista is that it tries to help you by virtualising your program files directory if you are not admin. By design there is NO way that you can write to the program files directory unless you're administrator.
Another option is to create all of your "updates" as MSI updates. That way the windows installer will trigger UAC for you and you could provide a logo for your software etc.
Option 3 is to use clickonce deployment which will allow you to automatically update your program without UAC but you live in a sandbox on the users system which may not work with your application's current design.