You will need to use nmake.  That's what I've read, and also what I remember doing the last time I had to compile a module for Windows (about 7-8 months ago).

In the documentation by holli, there's a reference to A Guide to Installing Modules by tachyon.  Under the section "The Basics of Module Installation", he mentions "Note on Win32 you will need to use a program called nmake."  This section also tells you how to get a copy of nmake if you don't already have it on your system.

Find and read that section carefully, and I think you'll be well on your way to fixing the problem.