Ok, after having to mess around with the SDK and these goddamm DLLs all evening, even more horrible problems have arisen when I try to run VRad:

** Executing...
** Command: "C:SteamSteamAppsleperoussourcesdkbinvrad.exe"
** Parameters: "c:steamsteamappsleperoussourcesdksdkcontentmapsapoc"

Valve Software - vrad.exe (Nov 22 2004)
----- Radiosity Simulator ----
1 threads
Could not find lights.rad in lights.rad.
Trying VRAD BIN directory instead...
ERROR: Couldn't open texlight file C:SteamSteamAppsleperoussourcesdkbinlights.rad

So fine, I make an empty lights.rad in my sourcesdk/bin directory, but then it says (full compile log, missing VVis) :

** Executing...
** Command: "C:SteamSteamAppsleperoussourcesdkbinvbsp.exe"
** Parameters: "c:steamsteamappsleperoussourcesdksdkcontentmapsapoc"

Valve Software - vbsp.exe (Nov 22 2004)
1 threads
materialPath: c:steamsteamappsleperoussourcesdksdkcontentmaterials
Loading c:steamsteamappsleperoussourcesdksdkcontentmapsapoc.vmf
fixing up env_cubemap materials on brush sides...
ProcessBlock_Thread: 0...1...2...3...4...5...6...7...8...9...10 (0)
ProcessBlock_Thread: 0...1...2...3...4...5...6...7...8...9...10 (0)
Processing areas...done (0)
Building Faces...done (0)
Chop Details...done (0)
Find Visible Detail Sides...done (0)
Merging details...done (0)
FixTjuncs...
PruneNodes...
WriteBSP...
done (0)
writing c:steamsteamappsleperoussourcesdksdkcontentmapsapoc.prt...done (0)
Creating default cubemaps for env_cubemap using skybox sky_wasteland02...
Run buildcubemaps in the engine to get the correct cube maps.
Finding displacement neighbors...
Finding lightmap sample positions...
Displacement Alpha : 0...1...2...3...4...5...6...7...8...9...10
Building Physics collision data...
done (0) (74135 bytes)
Placing detail props : 0...1...2...3...4...5...6...7...8...9...10
Writing c:steamsteamappsleperoussourcesdksdkcontentmapsapoc.bsp
2 seconds elapsed
Memory leak: mempool blocks left in memory: 49
Memory leak: mempool blocks left in memory: 1

** Executing...
** Command: "C:SteamSteamAppsleperoussourcesdkbinvrad.exe"
** Parameters: "c:steamsteamappsleperoussourcesdksdkcontentmapsapoc"

Valve Software - vrad.exe (Nov 22 2004)
----- Radiosity Simulator ----
1 threads
[Reading texlights from 'lights.rad']
[0 texlights parsed from 'lights.rad']

Loading c:steamsteamappsleperoussourcesdksdkcontentmapsapoc.bsp
Unable to load vphysics DLL.

There is a vphysics.dll file in the same directory, and I haven't done anything to it or even have a strange setup. This problem also happens for any map I try compiling. Any thoughts?

I had the same problem with an older Hammer.

I took the lights.rad file, and opened it in notepad. I then copy/pasted from the old lights.rad file, into a new on ,then deleted the old one. Then i saved the new one. It worked fine, obvioulsy backup your current file if you're gonna try this.