I think this isn't supposed to be in there.
1. Extract contents of Setup.dll in Setup_DLL folder and compile the script normaly
or
2. Put Setup.dll next to Script.iss and compile the script after you make the following script change (remove semicolon)
Code:
#define DSG_InternalDLL /* Putting Setup.dll next to the script will compress the DLL file into the Setup.exe file */