There is support for ds2dlls in the retail mod executable included inthe DS2TK.
ds2dlls need to be located in your 'mods' folder (...\My Documents\My Games\Dungeon Siege 2 Mod\Mods).
Instead of automatically loading any and all ds2dlls in found the mods folder, you have to provide a comma separated list of the ds2dll names you want to load when you launch the executable:
DungeonSiegeMod.exe ds2dlls="sprocket,widget,hack" ...
In addition, 'ds2dl0s' (that's ell-zero-ess, not ell-oh-ess) are also supported and they should appear in a separate list:
DungeonSiegeMod.exe ds2dl0s="hi_priority_sprocket,hp_widget,hp_hack" ...
A little confusing, I suggest DS2dll support are included in a mod manager to make it easier for us braindead players!
I agree, and that's why when I posted my suggestions for the DS2 mod distribution model over at the GPG, I mentioned ds2dll's.
http://garage.gaspowered.com/?q=node/2248#comment-16323
Edit:
Since some command line flags like "nointro = true" and "oldschool = true" work when placed into dungeonsiege2.ini, I wonder if the dll lists mentioned above will work in the ini too...