In every case where Cakewalk ships a 64bit plug-in, there is also a 32bit version.

OK that's good to know, I just haven't installed a 32 bit version for 4 years or more now. 
So why is he not using Session drummer 3? It should have installed. 

Because X2 Studio does not include Session Drummer 3. Here is a list of the features of MC6 and the X2 series http://www.cakewalk.com/D...mp;Req=Comparison.html

Scook, you're brilliant. The MS redistribution update worked. X2 is now picking up the SD2 dll file.  Thank you so much.
Guys just to clear the confusion.  I am running X2 32 bit.  This does not come with any session drummer preloaded.  You have to buy it separately.    Now, someone asked why i was not running SD3.   To be honest, i didnt see a download for SD3 so perhaps you cant buy it as an add on. 
Maybe SD3 only comes with higher end DAW such as producer versions or X3.    But, thanks to Scooks mail there, i got the dll recognised.   Phew.   thanks for the feedback guys and all the help.  Sure do appreciate y'all

SD3 was a Producer exclusive until X3. Now it comes with all versions of X3.
 
Glad it was just a lib issue.

Ya I just spent 20 minutes trying to find the old spec sheets but I just realized the one I was looking at was actually producer for X1 and 2. Even though my search was for Studio. The search does not even turn up any info about session drummer 2 at all?? I was trying to find the info about 32 bit 64 bit versions. Oh well. 
So we are back to just a basic scanned plug in issue. But I'm still wondering about the stability of 32 bit installs of X 2.