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The message probably does mean the design element isn't found...
...but that's not the error you want to look at since it's the return value from the second call, NIFFindPrivateDesignNote, after the first call, NIFFindDesignNote, already failed. Why did the first call fail? Don't throw away the original error status.
Then, I hope you get a better fix than adjusting the timing. I wouldn't have thought that DXL import would have anything going on in background; why should adding "sleeps" help? Is your code in ImportDXLDesignElement itself doing any threading?
Feedback response number AGUD7Y5USL created by ~Julia Prefootherlen on 11/25/2009