The file winscard.dll, is required by windows when working with Smart cards and Smart card readers. Smart cards contain microprocessors that contains encrypted information about their owner. If you have a smart card reader installed on your system, you should leave winscard.dll alone, otherwise it can be removed.
winscard.dll is flagged as a system process and does not appear to be a security risk. However, removing Microsoft Smart Card Library may adversly impact your system.
The Process Server database currently registers winscard.dll to Microsoft.
Your WinME system may have some missing or corrupt system files. Win ME does not support the system file checker feature so the only thing to do would be to extract the file from the windows cd or d/l off the internet. Do a repair install or wipe and do a fresh installation