I've tried to run it just after unpacking, also compile from Delphi 7 PE IDE - results are the same. Delphi stops right after IrrDevice declaration. No luck with Lazarus either (debugger error, because process is not running). Maybe I'm missing some dll files or have overlooked something very obvious?
Haven't tried .NET yet, I prefer plain old Objet Pascal .

UPDATE:
Here's what I got form Dependency Walker:
Error: The Side-by-Side configuration information for "d:\temp\irrpascal\irrlicht\IRRPASCAL.DLL" contains errors. This application has failed to start because the application configuration is incorrect. Reinstalling the application may fix this problem (14001).
Error: At least one required implicit or forwarded dependency was not found.
Warning: At least one module has an unresolved import due to a missing export function in a delay-load dependent module.
It also shows that I'm missing a MSVCR80.DLL, but after downloading it and putting in the same folder as irrpascal.dll problem still exists.

UPDATE2 - Workaround:
I've imported IrrPascal VC Studio project to CodeBlocks and compiled with GCC, then just replaced Irrlicht.dll with GCC one and everything is working. Downside might be bigger size of GCC compiled dll files.