Since I know some of you might be loosing sleep over this issue
here is the latest response from an AE in the forum post:
"
Hey Fab,
I have been able to replicate what you are seeing using your code. I was originally testing on LabVIEW 8.6 and I think what you have found may be a bug in the 2011 version of the C Code Generator. I am going to continue to work on it here and will post back with a solution or work around when I get it.
"
So, it might be that nobody at NI ever ran this example in LabVIEW 2011 until now...
anyway, I will keep you posted, so you can be able to sleep again
Fab