Looking at the remaining 32-->16 call:
HGLOBAL16 WINAPI NE_DefResourceHandler( HGLOBAL16 hMemObj, HMODULE16 hModule, HRSRC16 hRsrc )
Given the above signature for this function, its abundant use of 16-bit calls (AllocResource16, GlobalLock16, GlobalRealloc16 - twice for the last two), and the fact that the NE stuff deals with Win16 executables, is this really a 32-bit function? Does it need conversion?