Vivek,
I've got nearby the same trouble with IMAQ Copy (application was running with IMAQ 3.0, and crashed with 3.1). I guess, there are some troubles with compatibility. I have replaced IMAQ Copy.vi with IMAQ Copy Acquired buffer.vi in my application, and it works now. Of course, that was not "direct" replacement, because connector pane was changed, but usage of IMAQ Copy acquired buffer is more easy.
with best regards,
Andrey