The control reference seems to be the problem. And it isn't crashing in LabVIEW 7.1, so it looks like it got fixed.
There are some workarounds, though:
(1) Don't use control references. If you need to remember state information, there are other ways of doing that, such as shift registers.
(2) Don't use the "Create SubVI" function. Just create a VI on your own.
HTH,
Lars