Thanks Martin,
I had actually came to somewhat that idea myself. I guess I've just sort of had the attitude that, since the libraries I already own are for Kontakt, that using anything else is pointless. However, I suppose at this point I'd just like to narrow down the trouble no matter what the culprit is.
I really thought I had stumbled onto something awhile ago, even though I wasn't sure how it would apply to just using a local host. I realized that not only did I need to use a fixed address, I had to go deeper into the advanced settings and change the 100Tbase setting to 1000Tbase. When this did not work I realized my cables were old Cat 5. I got a Cat 6 cable and viola!......Gigabit connection established........directly between computers; no router. I even turned the other ethernet connection on the 8 core offjust so there was no internet or confusion. Just the Macs networked direct.
However, launching everything once again brought me no joy. It seems to have changed nothing. I suppose I'll try someting other than Kontakt next. The only other AU or VST software that I have of any consequence is the Epic Orchestra. I've not used it yet since it came with my recent VEP purchase. So it's a bit daunting trying to find my way around a new program while troubleshooting.
As for CPU spikes in Kontakt, this seems to be a widely documented problem especially with Pro Tools. However, I get no further with Logic or Reaper. Maybe the problem IS Kontakt. But I read where other users are doing fine with it and my problems start long before I reach the size usage they claim to get on setups similar or identical to mine. I just can't accept that an 8 core Mac isn't powerful enought to run a modest instance of Kontakt with 16 orchestral instruments loaded and only 4-6 midi channels playing out of those 16 at any given time. I CAN accept that there's an issue somewhere that I need to work out. I'm just completely baffled where else to look for that issue. And I've got work coming up soon. I'm going to need to sort this out.......