Why create a DLL? Simple example available?

I'm not a complete newb in that I know that DLLs are used for code that's required by multiple parts of your program The main reason I'm writing this is because, well, in C++ I haven't come across a reason to make a DLL yet. I've never participated in a large project that would require it, but was wondering if anyone had a small scale sample project where creating a DLL would be useful. Anybody?
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One of the main reasons for .DLLs is code reuse. I would find something relatively small and self-contained that you are likely to use again and put it in a the library. You could do something like implementing the SHA-1 cryptographic hash function.
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That's a good idea. I've wanted to write a crypto has for a while anyway. Thanks, Grey Wolf.
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