If you don't like the idea of a watchdog process, you should be able to use the Windows Service Manager (SCM) function to get an auto-restart on failure/termination of your process.
You have to make your process a Win32 service. Essentially, you register your process as a service with the OS, and at that time you specify the failure/restart behavior you want. I think you can simply have the service manager restart your process every time it terminates. The SCM serves as your watchdog process, you don't have to create your own.
Microsoft Windows Internals, ISBN 0-7356-1917-4 has good explanation of Windows Services. I'm not sure CVI directly supports creating processes as services, but there's no reason you can't do it for yourself. I seem to recall that I've created services using CVI at one time or another.
Menchar