Could you please try the latest IPP 7.0.3 package? I run the code with static linkage at Intel 64 platforum:
arena: 0x7fff0000LZO decode status: 0
We have verified the problem at 32 bit problem, and planed to include the fix into the next update release (possibly at 7.0 update 5 release). Thanks for your report.
For more complete information about compiler optimizations, see our Optimization Notice.