Host_Error: IDLLFunctions::DLLInit returned false.

[Chartax]

Make sure you have installed "orangebox" and that you are running the correct srcds.exe

Code:

Hldsupdatetool.exe -game update orangebox -dir YOUR/DIRECTORY/HERE -verify_all

And then make sure you are running the "srcds" in the orangebox directory, with "-game garrysmod".