I'm in the same boat as Dennis here. I've been reading this, and I looked at your VIs, but I'm not sure what it is you are trying to accomplish. What I
think is going on is that you don't quite grasp the concept of dataflow. It looks like you want to be able to change the toggle switch in the sub VI (or maybe the main VI) and see it immediately affect an LED in the other VI. This is not possible with a simple sub VI call. Only one of those VIs will be running at one time. They don't "communicate" while they're running unless you set up some mechanism, such as a queue. The main VI runs, processes everything it can up to the sub VI call, calls the sub VI, then halts execution until the sub VI is finished. In your example this will take 5 seconds when the input to that sub VI is set to true.
Maybe I'm way off, this is just what occurred to me when I posted the first time, and it still appears to be what's going on.