There's nothing wrong with using local and global variables, as long as you have exhausted all other possible alternatives first, which it looks like you have. Sometimes you just have to 'bite the bullet' and use them. Yes they do affect the performance, but as long as your program runs acceptably, then dont worry.
You can look at your program performance by using the Profile window (in LV 6.0, found in Tools>Advanced>Profile VIs). You can measure the memory usage and speed of your VIs with this tool, and if you are having problems with performance, you can compare different methods to find the most efficient. If you want more information on improving performance there is a Performance Tips section in the LV 6.0 Help, and if you can get hold of a
copy, the LV Basics II course manual covers this in more detail (Lesson 7).
I hope this has been of some help to you..
Kim