If I remember right, the /loadmod parameter just loads your DLL into the Outpost2 address space. Everything else is up to the DLL to handle.
When Windows loads the DLL, it will make a call to DllMain. If you need to hook anything, or make any changes, that's you're one chance to get setup. Windows also calls DllMain (with different parameters) when unloading the DLL, so you can also do cleanup in there.