If you use the lib, you don't need any of the ptc source files (.c, .cpp, .h) - you just need the .lib (or the .a). Basically, ddraw.h is part of DirectX that's used inside the library. So get rid of that lot.
If you are coding in C++, then you will need to add something like
extern "C" void ptc_close(void);
extern "C" int ptc_update(void *);
extern "C" int ptc_open(char *, int,int);
...
to the top of the file you're using them in.
If you're coding in C, it's enough to do
void ptc_close(void);
int ptc_update(void *);
int ptc_open(char *, int,int);
...
Jim