RAMaston,
I verified that LabVIEW 7.0 still crashes when your program is run, but it works in LabVIEW 7.1.
By right-clicking the string control and setting the mode to "'\' Codes Display", I was able to see what affect the different termination codes had. I found that if the text file ended in just "\r", LabVIEW would crash. If the "\r" was deleted, it would work fine. Also, "\n", "\r\n", and "\n\r" all work fine.
For your application, you could consider using the string functions to either append "\n" to the end of the text or to remove the "\r". This should help avoid the crash you are seeing in LabVIEW 6.1. I wasn't able to find any information regarding specific changes that may have been made to the function between LabVIEW 7.0 and 7.1 which fixed the behavior.
Regards,