Srikanth,
Why not just use "Write to Spreadsheet File" instead of going with the binary format? That's often the most foolproof way to transfer datasets between applications.
I actually played around with AxoScope a little bit and found that I could read in integer binary datasets, but not floating-point datasets, from LabVIEW. Maybe that's why you were scaling the data before saving it? I found that I could scale SGL data by a factor of (2^15/max value), convert to I16, save to binary file, and then successfully read it into AxoScope, though it seemed irritating that AxoScope didn't provide for arbitrary range conversion and forced me to choose between +-10V, +-5V, etc.
It wasn't clear why the program wouldn't read in SGL datasets. Perhaps the datatype somehow differs from LabVIEW's SGL? But go with the Spreadsheet File method and you don't have to worry about this problem.
One additional question is: why are you analyzing your data in AxoScope if you have LabVIEW at your disposal? LabVIEW seems more flexible from an analysis and presentation perspective, so why not just do any data manipulation and display there?
Hope it helps,
John