Are you using LV 6.0 or higher? If you are then read this excerpt taken directly from LabVIEW help: "Note The ^ operator, which in pre-6.0 versions of LabVIEW Formula Node stood for exponentiation, now represents the bitwise exclusive or (XOR) operation. The new operator for exponentiation is **, for example, x**y." Change your ^ to ** and you should be all set.
Hope this helps,
Brian