Although I like RealGuitar better, I do like Acoustic Legends HD and it has a good selection of guitars. For solo, it is great. For strumming, it is less flexible than RG and lacks a stereo mode.
You can turn those sounds down or off in the Kontakt interface. I agree they are ridiculously loud. I don't have it open, but if you look in the Kontakt GUI, you should see knobs for fret noise, release, etc.
By the way, I also have to turn those down in RealGuitar, although they are not as loud.