I do this for using Battery 3 all the time.
It looks like you missed a bit on the Insert Synth Options dialog box. You can add the missing things after the fact, but if you wanted to just start over with a blank new Normal project:
1. Click on the synth rack options to Insert SD3. This will open the Insert Soft Synth Options dialog box.
2. Check the following options:
1. MIDI Source
2. Synth Track Folder
3. All Synth Audio Outputs: Stereo
4. Synth Property Page
3. After hitting OK, you will end up with a track folder, a MIDI track, and audio tracks for each stereo output of SD3, and will also open the SD3 property page for you to select a kit and assign drum outputs and such.
Since this is a fairly repetitive thing for me to do, I did all of the above setup work, then dragged the MIDI track to be the first track under the track folder (easier to find since you will be doing lots of midi things). I also ran through the relative levels of the drums and set some basic panning and levels for general use.
After all of that was done, I saved the whole thing as a TEMPLATE, calling it something like Normal - Multiple Drum Outs. (I actually also split the console off to a second monitor, but that may not apply to you).
This way, I have a handy template all ready to go with all of that drudgery done, greatly reducing project start time, and looking quite pro at the same time. (I need all the help I can get).
Oh, I also created a custom kit within Battery 3 (you can do the same in SD3), so that I also had all of the sample cells set to use the multiple stereo outputs offered. I save each such kit under its original name, but with a '- Multiple Outs' tag at the end.
Over time, I have built up a few kits that contain most of the kinds of individual drum sounds that I like to use, and I also have reasonable initial levels and panning ready to go.
In your original posting, it looks like you forgot to add a MIDI Source track, so there wasn't anywhere to assign midi in/out for your SD3 instance.
Please let me know if the above helped you any, and let me know if you have any questions or need something explained a little better, and I'll happily tray to help.
Bob Bone