Michael Aivaliotis told me about this link where you describe the use of the Rainbow Security Key.
I've been having problems in using the Automatic Protection scheme where the LabVIEW executable is wrapped in a shell. Have you actually managed to get this to work, because I've tried everything and it keeps on coming up with a Template Error.
Just so you know the Automatic protection scheme does check for the presence of a key every minute, so you can't startup several copies with just one key. I believe if the key is not found then the program is shut down immediately (and I doubt if you have any control over this), but I wont know for sure until I can get the Protected Executable to run!!