Hi Folks,
I just got back from NI Week 2010. I attended a couple of sessions that discuss a new feature that basically resolves the issues described in this thread. This is the Packed Project Library.
A Packed Project Library is a compiled library target available as a new build target in LV 2010. Because it is compiled it is limited to the platform it was compiled for. It is accesable through VI Server. And the conditional disables are processed so that unused code is removed from the compiled target.
I think this solves all the issues discussed in this thread. I haven't had a chance to try it though.