I guess I'm a bit late on this question but I'll write something anyway for anyone having the same problem. This is the same answer as I gave to this question.
My problem was that I'd like my application to be a GUI application but the processes executed should be run in the background without any interactive console window attached. I think this solution should also work when the parent process is a console process. You may have to remove the "CREATE_NO_WINDOW" flag though.
I managed to solve this using GenerateConsoleCtrlEvent() with a wrapper app. The tricky part is just that the documentation is not really clear on exactly how it can be used and the pitfalls with it.
My solution is based on what is described here. But that didn't really explain all the details either and with an error, so here is the details on how to get it working.
Create a new helper application "Helper.exe". This application will sit between your application (parent) and the child process you want to be able to close. It will also create the actual child process. You must have this "middle man" process or GenerateConsoleCtrlEvent() will fail.
Use some kind of IPC mechanism to communicate from the parent to the helper process that the helper should close the child process. When the helper get this event it calls "GenerateConsoleCtrlEvent(CTRL_BREAK, 0)" which closes down itself and the child process. I used an event object for this myself which the parent completes when it wants to cancel the child process.
To create your Helper.exe create it with CREATE_NO_WINDOW and CREATE_NEW_PROCESS_GROUP. And when creating the child process create it with no flags (0) meaning it will derive the console from its parent. Failing to do this will cause it to ignore the event.
It is very important that each step is done like this. I've been trying all different kinds of combinations but this combination is the only one that works. You can't send a CTRL_C event. It will return success but will be ignored by the process. CTRL_BREAK is the only one that works. Doesn't really matter since they will both call ExitProcess() in the end.
You also can't call GenerateConsoleCtrlEvent() with a process groupd id of the child process id directly allowing the helper process to continue living. This will fail as well.
I spent a whole day trying to get this working. This solution works for me but if anyone has anything else to add please do. I went all over the net finding lots of people with similar problems but no definite solution to the problem. How GenerateConsoleCtrlEvent() works is also a bit weird so if anyone knows more details on it please share.