I have never used any of the DrDAQ products (always use NI) so I am not sure how the files are formatted. If you contact them they might be willing to share how the files are written with you. You could then create a VI to convert the files into text files for you.
You might also be able to automate how you are manually converting the files to text. If the Picolog software has any ActiveX properties or methods exposed, you could control it from LabVIEW.
Hope this helps a little.
Matt Kisler
Applications Engineer
National Instruments
http://www.ni.com/ask