i have a free function in the dll to clear the memory
Then you have a shot at making this work. The function declaration ought to look like this:
[DllImport("foo.dll", CallingConvention = CallingConvention.Cdecl)]
private static extern int func1(int arg1, out IntPtr arg2, ref int arg3);
And you'd call it like this:
IntPtr ptr = IntPtr.Zero;
int dunno = 99;
string result = null;
int retval = func1(42, out ptr, ref dunno);
if (retval == success) {
result = Marshal.PtrToStringAnsi(ptr);
// etc...
}
if (ptr != IntPtr.Zero) func1free(ptr);
Where "func1free" is the otherwise undocumented function that releases the string.