I tried it again after I put up my "Yours In Frustration" post and I (think I) got it to work.  Tell me if I'm doing something that doesn't need to be done.
1.  Started new Cakelab project
2. Inserted Kontakt Player, chose Strummed Acoustic Guitar and sent in three articulations.
3. In Kontakt I went into the Output section.  I clicked on the + (add).  A box opened and I clicked on a dropdown next to Standard/Host.
4.  I selected KT aux1 [1] and a new st1 appeared in the Output channels
5.  I clicked on Output+again and again went to the Standard/Host dropdown and this time selected KT aux 2[1].  Now I have three output channels.
6. Inserted 2 MIDI tracks in Cakelab. 
7. In MIDI channel 2 I went to the input and selected Kontakt, then went to the dropdown selecton at the top of the MIDI channel where there are three dropdowns stacked.  On the top dropdown I selected Kontakt 2
8. In MIDI channel 3 I went to the input and selected Kontakt, then went to the dropdown selecton at the top of the MIDI channel where there are three dropdowns stacked.  On the top dropdown I selected Kontakt 3.
9.  I went back into the original Kontakt player and set up my articulations in the second and third instruments.
 
This seemed to work.  All three channels played the different articulations and the CPU usage didn't seem to move.
Now, based on some of Chris's new post and the others, am I taking any unnecessary steps?  I came to these steps through trying a combination of what was posted here and various YouTube vids I saw.  I'd like to find a comprehensive user's guide for Kontakt Player.  Cannot seem to find that.
 
John B.
 
 
 
 

I think I got it to work.  I tried to post the steps I did but thanks to this stupid forum host it got deleted.  I'm not retyping what it took a half hour to type in the first place.  Why should making a damned correction erase a whole post!?

Bob Bone did a write up on Kontakt 5 a while ago that might be useful
 
http://forum.cakewalk.com/Sonar-X3-and-Kontakt-5-per-Bobs-request-m3030422.aspx
 
It's a bit of a read, but may help you out in setting up Kontakt5 for multi midi and multi output.
 
 

arlen2133
Bob Bone did a write up on Kontakt 5 a while ago that might be useful
 
http://forum.cakewalk.com/Sonar-X3-and-Kontakt-5-per-Bobs-request-m3030422.aspx
 
It's a bit of a read, but may help you out in setting up Kontakt5 for multi midi and multi output.
 
 

Thanks so much for posting this, arlen.  On the previous post (that got mysteriously deleted) I asked if anybody knew if there was a comprehensive guide to using Kontakt Player.  They update this thing so much that what you linked to may be outdated, but I'll take a look.
 
I might try to post my steps again tomorrow if I have time.  I'd like to know what some of you think.  Maybe if I took too many steps?
 
John B

You're welcome John.
This is the one I used, so when I saw your post it took me back to this conversation.
 
Bob spelled it out pretty well on this one, but I also remember there was a post with pictures (so you could see what was going on).  I haven't found that one yet. 
Yes..  Post what you got so far (if you can).
 

It's not a forum host but the anti spam filters that will delete SOME posts if you edit them. It's never happened to me and I almost always edit posts. But many, even people with hi post count get deleted automatically by the spam filters. 
 
Anyhow I figured it out using my normal method of exploring the GUI and guessing at how it works. I will just delete the whole thing because it seems kinda repeating what I already have with Dim Pro and Air expand. And they are both easier to use for sure. 
Doesn't look like much happens unless you pay for it. 

OK.  I just made a step by step guide for myself that I'm going to put into my Studio Notes notebook.  This is how I do the Kontakt Player set up for multiple outputs.  Even though this is working for me, I'd like you to look it over and tell me if there are any steps that don't seem to make sense to you or that I may not need.  I'd appreciate it.
 
1. Insert Kontakt Player
2. Load multiple articulations into the one instance of Kontakt Player
3. Click the + sign next to Outputs
4. In box that appears, open dropdown at Standard/Host
5. As the original first channel is already output 1, select "KT aux 2 [1]" for the second articulation
6. Repeat steps 3&4
7. In Standard Host, for third articulation, select "KT aux 3 [1]"

Repeat steps 3,4 &5 for as many different articulations you want to load into Kontakt

8. In Cakelab, insert as many MIDI channels as you have created outputs in Kontakt
9. In each MIDI channel, go to the Output and select Kontakt
10. In each MIDI channel towards the top of the channel there are three dropdown selectors that are stacked.  On the top dropdown box, select the corrusponding channel you want (Track 2 would be Kontakt 2.  Track 3 would be Kontakt 3, etc.
11. Go into original Kontakt player and program your desired articulations
12. Record each desired articulation on the corrusponding MIDI track.

Here is a step by step that I'm going to add to my Studio Notes notebook.  This is what has been working for me to create multiple outputs in Kontakt Player.  Check it out and let me know if you think I'm over doing something that doesn't need to be done.
 
1. Insert Kontakt Player
2. Load multiple articulations into the one instance of Kontakt Player
3. Click the + sign next to Outputs
4. In box that appears, open dropdown at Standard/Host
5. As the original first channel is already output 1, select "KT aux 2 [1]" for the second articulation
6. Repeat steps 3&4
7. In Standard Host, for third articulation, select "KT aux 3 [1]"
Repeat steps 3,4 &5 for as many different articulations you want to load into Kontakt
8. In Cakelab, insert as many MIDI channels as you have created outputs in Kontakt
9. In each MIDI channel, go to the Output and select Kontakt
10. Ineach MIDI channel towards the top of the channel there are three dropdown selectors that are stacked.  On the top dropdown box, select the corrusponding channel you want (Track 2 would be Kontakt 2.  Track 3 would be Kontakt 3, etc.
11. Go into original Kontakt player and program your desired articulations
12. Record each desired articulation on the corrusponding MIDI track.

Cactus Music
Question, can you use other libraries? 

other libraries usually (always?) require the full blown kontakt (unless they come with the player), but that can be had 2nd hand for ~150 from time to time... it's waaaaaaaay more powerful than dim pro, dunno about air expand

Bump.
Could somebody please reply to MY last post?
Thanks
John B.