AFAIK the environment thing is only necessary if you want to use the multiport layer. From what you've previously said, you don't have a huge template to deal with, so this should not be necessary for you.
You can use a different isntance of Kontakt for each channel and that will work. You could also use just one instance of Kontkat, but that is more complicated if you want multiple outputs.
When I'm in the studio tomorrow, I'll take a screenshot to show you what the settings should look like for one instance per MIDI channel.
DG