Don't forget that you have static library as an option too. On some platforms dynamic libs come with a bunch of annoying baggage. They're also slightly slower (though this is usually beside the point).
They also can't be replaced without recompiling the program (you might be more concerned about this in a web environment). Finally, when you're only running one of the programs on a computer you gain nothing by making the lib dynamic...and little when there's only two.
If the source files have to be compiled with different conditional compilation settings to work in the two applications, you'd better ship the source and compile it along with the apps themselves.
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