I think that the problem might be that John is trying to send each articulation to a different Kontakt audio output. Our tips above utilize only the main stereo out.
 

Johnbee58
...apparently they changed Kontakt's output channel selection.  You said that every new articulation was supposed to create a new output channel for it, but it doesn't.  There is one channel called st1 and three called aux...  There's no easy way to connect the articulations to a MIDI track...
...
2. Opened the Kontakt Output selection and went in and created another channel -st2
3. Created three MIDI tracks in Cakelab
4. Changed the inputs of the three MIDI channels to Kontakt...

John, for this moment try don't touch the audio outputs in Kontakt. Each new articulation should play from the same main audio stereo out. What I meant is that each new articulation should already have been assigned to a subsequent MIDI channel, so essentially you should be all set just by loading the articulations, no more steps needed in Kontakt.
 
To connect the articulation to a MIDI track you have to select corresponding output and channel in Cakelab MIDI track, like in the graphics in Cactus' post above. Output should be set to Kontakt and channel to one of your Kontakt articulation's channel.

Cactus Music
I downloaded the demo and the demo library.
I opened it and it's kinda a blank interface? The library browser is empty so I'll have to sort that out. 
I guess this is not something you can use without reading the manual from front to back. 
 

Actually all that is simple. In Kontakt you need to click on that bar where "Instruments" is, right under the blue "Factory Selection" graphics (not the arrow pointing down) in left pane. There are the instruments, you just drag them to the right pane, each should be by default assigned to a different MIDI channel.

In Kontakt instruments just above MIDI outs there are audio outs and I think that is what John was trying to mess with. But then he would need to create additional audio tracks and route separate Kontakt outs there. I think it's essential for now to not confuse audio in/out with midi in/out, and try to wrap basics how the audio/midi signal is flowing in CakeLab, which may be a little disconcerting in the beginning.
 

If you want to have notes, key switches and mod wheel data on separate midi tracks it's pretty simple. Start off with one instrument loaded in Kontakt set to receive midi on ch 1 then add 3 midi tracks. The outputs for those 3 midi tracks want to be set to the Kontakt instance with your instrument. Set the midi channels on the midi tracks to ch 1. Make sure your controller is transmitting on midi ch 1 or omni. Now you can put note data in the first midi track, key switch data in the second and mod wheel data in the third so that you have all the data separated. You can then put those tracks in a folder track to clean things up a bit.
 
Putting multiple instruments in Kontakt is similar, but just make sure you assign the channel settings to a new channel. So instrument 2 in Kontakt can be set to midi ch 2 and its corresponding midi tracks can be set to output to Kontakt on midi ch 2 and if your controller is set to transmit on midi ch 2 as well you will only hear instrument 2 playing.
 
Having separate Kontakt instruments output to separate audio tracks is a different matter and involves creating outputs in Kontakt, routing the instruments to them, then routing them to new audio channels in Cake. 
 
On top of that, you can also route individual sounds from a single multitimbral Kontakt instrument to separate audio tracks. That is done in a similar way to above.

I know the instruments demo installed. I would assume those should show on the list here but it is blank?

Cactus Music
I know the instruments demo installed. I would assume those should show on the list here but it is blank?

have you tried clicking the"manage libraries" button?

my bad, click the cogwheel to open preferences, and then choose the database tab to see your library paths, make sure the factory lib is in there
 

Well I tried your first advise and get this so I'll try the download and see what happens. 

Yeah it launched that app for me, but I have it installed, hence my follow up... you can locate libraries with that too but it's quicker via the prefs dialog
Sorry for the confusion

No, not confusing at all. There is just no instruments at all. I downloaded that Access app and it's yet just another ST manager like the XLN. I guess I didn't need it. I did tell me I needed to update Kontakt 5 which is weird because I just downloaded it from the site?? 
 
I will try re installing the demo instruments. 
Question, can you use other libraries?