[DominickC]

Here is my current code.

PneuController is the "main VI' which will run the subVI.
PneuStateMachine determines which state ReqPos should pass along to PneuState. ReqPos will ensure a state is not run more than once, however I've yet to integrate this code.
PneuState sets the outputs based on the state.

Sorry for the lack of comments and the rather messy block diagrams.

EDIT for clarity: PneuStateMachine functions as expected and desired. When PneuStateMachine is put into another VI to run as a subVI, the outputs are not updated until the end of the loop.