Hey Rombar,
It is certainly possible to pass variables by reference; for example, if you go to <TestStand Directory>/Examples/Demo/C and open the computer.seq file, you can see one of the example sequences that uses CVI modules. If you click on one of these steps, you'll see that some of the parameters, such as the error information, is passed with pointers. This is a pass by reference.
To help narrow this down, it'd be good for us to figure out a few things about how the code is run. First, if you go to Configure > Adapters, select the CVI adapter and choose Configure, you can see options for this adapter. Do you have it configured to run in an external instance of CVI or as an in-process call?
Also, if you're wanting to see a change made in TestStand in your external code, this makes me think that you're wanting to run the code and then continue to execute your TestStand sequence while the code runs. How did you configure this behavior? For example, are you calling this code as a separate sequence in a new thread, or are you using another method to run this code while the sequence continues to run?
Finally, if we could see a screenshot of how you're configuring the parameters on the TestStand step, that might be helpful as well.