There is an older thread that talks about this problem without a solution. I had the same problem but have since discovered the solution. Confirm the version of DVDCLoner you are using. DVClonerII has resolved the problem. Note that I just recently installed the DVDCloner that claimed to be DVDCloner2 but I discovered via the problem it was DVDCloner not as the retailer download claimed it to be.
I have downloaded DVD Cloner demo 2.40 from DVDcloner home page and got the leveli0.dll error. It is the latest version. If I uninstall and install an old version like 2.2 it loads without an error.
My last posting was not correct. It is the older version 2.2 that works. The newer version will has the level01.dll issue. The tech support for this software sucks!