I had the same problem with the Labwindows/CVI SQL toolkit and I worked around the problem by creating a string parameter with a length of zero. Not sure if the Labview version has a similar function. Mine looks like this:
DBCreateParamChar (statementHandle,"parameterName",DB_PARAM_INPUT,stringPointer,0)
where the last parameter is the string length. Note that just setting the string to NULL didn't work because expected string length includes the NULL character. So for a normal string, I have to use "strlen(stringPointer)+1". For a NULL string, that expression would evaluate to 1 of course.