Hi, Ankit.
Well, it's important to loop a long waveform buffer for two reasons:
1) The longer the waveform, the less spectral deviation from pink it will have. A short waveform will have a "noisy" spectrum, even if you average it, because of the random nature of the waveform. As you increase the length of the waveform, the averaged spectrum will converge to a nice flat pink line. Now if you're willing to measure both the input and output waveforms at your DUT, this doesn't matter, since you can subtract out the spectral bias of the generated waveform. This is typically how I make my measurements, even with a long waveform.
2) The waveform needs to have a certain length to ensure that low frequencies are included. And the spectral bias problems mentioned above are especially bad at the lowest generated frequencies.
As for the Sound & Vibration Tookit, I have to confess that I don't have any experience with it, so perhaps someone else can chime in here.
As for generating long waveforms through the sound card, one thing that I do frequently is write LabVIEW code to create a .wav file of the waveform I need. Then I play it though the sound card with WinAmp or something so I don't tie up LabVIEW with the generation.
Hope this helps,
Ed