You are probably running afoul of the File System Redirector. 32-bit processes that try to open files in c:\windows\system32 are redirected to c:\windows\syswow64. This is an appcompat feature that gives 32-bit programs a fighting chance to survive on a 64-bit operating system. Lsass.exe is indeed special, there is no 32-bit version of that EXE available on a 64-bit machine.
Possible workarounds are:
- building your program to x64 so you'll run as a 64-bit process and don't get redirected
- opening c:\windows\sysnative\lsass.exe instead
- using Wow64DisableWow64FsRedirection() to disable the redirector. While an obvious solution, beware that it is dangerous since your program might inadvertently load a 64-bit DLL and bomb, the reason the redirector is needed.