No, it is not possible to use the labVIEW case structure in an onboard program. However, it is possible to implement the functionality you need by using a label, a jump to label on condition function and two on board variables. What you need to do is read the value of your encoder into one of the variables, once this value is in there you will use some of the variable arithmetic functions to compare its value to a value you would load into the second on board variable (the most common way is to use the subtract variables function). The result of the last varible operation is the used inside the jump to label on condition fucntion to evaluate the condition and to jump or not jump back to the label dependding on the result. For a much clearer explanation of this functional
ity as well as some example code, please refer to chapter 15 of the following manual:
http://digital.ni.com/manuals.nsf/websearch/EB609F9BA065EA7A86256D350060C9A0?OpenDocument&node=132100_US