Dll loading from lib search directory?

[CodeCat42]

My project is linking with a few static libraries, and those libs also import the appropriate dlls. One library came with the dlls located in the lib/ directory by default, along with the static import library. So I added that directory to the libary search paths. Now the strange thing is, the dlls are being found and loaded from the search path when I run the project from C::B. Moving the executable to the project's base dir and running it from there through explorer gives a dll-not-found error. There is nothing special about the library directory, all that points to it is the library search path in the project options, and yet it's loading the dlls from there!

So I was wondering, is C::B trying to load dlls from the lib search path normal behaviour? Or an undocumented feature/bug?

I'm using the 13 Aug 2007 nightly of C::B with MinGW.