Yes, the template is working just fine. I am using 3 instances of 64-bit VEP, each with 16 instances of Kontakt (and a few omnisphere). The template is around 12 GB, but most patches are purged in kontakt to minimize usage. Once in a while I re-purge everything to keep it lean.
Make sure you set up the number of midi ports to 16 and audio inputs to 32 or more in VEP. You also have to create several aux output channels in Kontakt and set that to your default (close kontakt and re-open). For example, one Kontakt instance in one of the VEP instances, contain 16 instruments that are routed to 16 midi tracks in Pro Tools. You assign midi port 1 for that kontakt instance. Just as an example, out of these 16 patches, you have 8 flute articualtions (sus, stacc, runs, grace, etc) and 8 oboe articulations..So you want to output all 8 flute patches into one Audio input channel in VEP seperate from the audio input for the oboe. That way you can apply different EQ, reverb for each group. From within Kontakt, you would assign all flute patches to St. output 3/4 and all oboe to St. output 5/6. (normally St. output 1/2 goes to the master channel in VEP). You can have more grouping if you want more control.
You create 2 input channles in VEP and use the output assignments in Kontakt as the inputs. Make sure you have set the number of audio output in VEP, and assign an output to each audio input bus. These outputs will serve as the inputs for the aux channels in Pro Tools. You do that for all orchestral instruments, grouping them as you see fit. The main criteria is how you want to apply reverb for the various patches, especially if you are mixing instruments from various libraries that do not have similar reverb.
You repeat the same with the next Kontakt instance, assigning midi port 2-all. Once the kontakt isntance is full, save it as a multi and back-it with a version number (like Strings 1.1), as you make changes and balance the volumes, you will keep a kack-up and save it as version 1.2. Do that for all yout kontakt instruments, grouping their kontakt outputs as you see fit for your mixing and FX applications.
For instance, I have grouped my strings as per the library they came from, then by Shorts and Longs in VEP, but they are bussed in pro Tools to Strings Hi and String Lo aux channels. Reverb is done wihtin VEP through sends to an aux channel that has an algorithmic reverb for ER and positioning, and the aux channels in pro tools have sends to a reverb channel with Lex for the reverb tail. EQ is done in VEP mainly, to preserve CPU power, but I also use occasional EQ in PT on Str-hi and Str-lo channels with plugins that are not yet 64 bit (like Waves SSL).
Hope this helps.
JP