How can I return a PChar from a DLL function to a VB6 application without risking crashes or memory leaks?

You need to craft a BSTR instead. VB6 strings are actually BSTRs. Call SysAllocString() on the Delphi side and return the BSTR to the VB6 side. The VB6 side will have to call SysFreeString() to free the string - it will do it automatically.

If PChar corresponds to an ANSI string (your case) you have to manually convert it to Unicode - use MultiByteToWideChar() for that. See this answer for how to better use SysAllocStringLen() and MultiByteToWideChar() together.

If you don't want to risk crashes or memory leaks, then craft your API using the Windows API as a model. There, the API functions generally don't allocate their own memory. Instead, the caller passes a buffer and tells the API how big the buffer is. The API fills the buffer up to that limit. See the GetWindowText function, for example. Functions don't return pointers, unless they're pointers to things the caller already provided. Instead, the caller provides everything itself, and the function just uses whatever it's given. You almost never see an output buffer parameter that isn't accompanied by another parameter telling the buffer's size.

A further enhancement you can make to that technique is to allow the function to tell the caller how big the buffer needs to be. When the input pointer is a null pointer, then the function can return how many bytes the caller needs to provide. The caller will call the function twice.

You don't need to derive your API from scratch. Use already-working APIs as examples for how to expose your own.

Combining Sharptooth and Lars D's answer; aren't widestrings already allocated via windows and BSTR?