That IDE is very nice; don't feel any shame. VS97 was short lived, but you should have no problem using it for that. Here is something I came up with for someone using VC Express, I think it would work fine for your purposes, but here are some other things to consider.
The .suo, .sln and .vcproj files will not make sense to VS97. So, delete them. Also, I am trying to find a series of jpgs I made listing the correct project settings. One thing, when you change the settings in VS97, make sure you remember that there are different sets for release and debug. Hang on, I post up links to the photos.
EDIT : Man, am I scatter-brained today, the pics are in the zip!!!!!
So, anyway...I don't see what is going on, but...somewhere in 1.1 or 1.2, VS97 has a difference. I can't reacall, that was long ago, but I know that I use VS97 to make a dll for VB5.0, maybe the wizard worked differently, but...you can use this stuff to set it up, too.