1) I suspect that OPENDLG.LIB was a library that was necessary to build a OS/2 version 1.3 PM application. Of course, the question is, why is it still listed in the makefile ? Maybe that was an omission to remove it.
2) I suspect that problem with CPPOS30.LIB is that it follows a newer OMF library format than what LINK386 understands. The easiest thing is to replace "link386" with "ilink /NOFREE". /NOFREE will force ilink to follow the same command line syntax as LINK386 but it will be able to link to CPPOS30.LIB.
In any case, it is not wrong to link to the RTL dynamically (but it might be a better idea to link against CPPOM30.LIB, that is, specify /GM+ as compiler switch: link multi-threaded).
David, can you post the makefile as you have corrected it ?