I had this same error. I found that there was a slightly newer version of Wrye Bash, rebuilt the bashed patch and tried again. Same error. I then downloaded the BDS-MM Patch mod again, but this time the ESL version, rebuilt the bashed patch and tried again. This time there was no error, and DynDOLOD completed successfully. :D
Like jonny6101 and CtMrebelL10N, my running of DynDOLOD.exe (and x64 version) ended with an error in line 322. Here's the end of the log showing that exception report:
[00:03:06.038] Creating mini atlas data
[00:03:06.130] Gathering meshes for atlas creation
[00:03:06.282] Processing meshes for atlas creation
[00:03:06.782] Creating atlas textures C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\DynDOLOD_Output\Textures\DynDOLOD\LOD\DynDOLOD_Flat_Atlas_Tamriel.dds from 32 textures
[00:03:13.474] Creating atlas textures C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\DynDOLOD_Output\Textures\DynDOLOD\LOD\DynDOLOD_Atlas_Tamriel.dds from 136 textures
[00:03:40.210] Combining mini atlas map
[00:03:40.232] Combining flat atlas map
[00:03:40.249] Executing LODGenx64.exe
[00:03:40.263] "C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\Edit Scripts\LODGenx64.exe" --inputfile "C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\Edit Scripts\Export\LODGen_Tamriel.txt" --logfile "C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\Logs\LODGen_Tamriel_log.txt" --dontFixTangents --removeUnseenFaces --skyblivionTexPath
[00:03:40.287] Found C:\Users\Vargr\Documents\Games\Elder Scrolls\Skyrim\DynDOLOD-2.19\DynDOLOD\Edit Scripts\DynDOLOD\DynDOLOD_TES5_manual_refr_Tamriel.txt
[00:03:40.309] Add 5 manual cells for DynDOLOD
[00:03:40.336] Adding Master into Tamriel
[00:03:40.359] Setting up 10413 cells with 625 active cells for 3350 dynamic LOD objects for DynDOLOD - T
[00:04:26.901]
[00:04:26.901] Exception in unit userscript line 322: One or more errors occurred
[00:04:26.901]
[00:04:26.901] Check log lines above the exception for additional hints.
[00:04:26.901] If problem persists, post error report with contents of ..\DynDOLOD\logs\DynDOLOD_log.txt to http://forum.step-project.com/topic/5011-dynamic-distant-objects-lod-dyndolod