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From your report, it sounds like Kontakt Memory server crashes and causes the Kontakt instance to get stuck trying to communicate with the (non-existing) memory server. VE Pro in its turn waits for Kontakt to finish its call, but since it never finishes - it gets hung.
If you have any useful crash / hang reports I'd be happy to read them.
I have since been able to reduce these problems to an acceptable level by experimenting with the threading settings on the slaves. There seems to be no obvious logic as to how to set this parameter. However it seems that you can change this parameter "on the fly". In otherwords - no need to unload/reload.
Robert John Godfrey
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Cubase 5.10
Windows XP on DAW - 7 on slaves (dual and quad core respectivley)