I tried Epic Orchestra and I definately get further with it than I do Kontakt. While I still wasn't getting what it seems like I should be getting based on many other users reported usage, I've had to look at the differences in what I may be using compared to others. While I'm only trying to run a modest 16 Kontakt instruments, they're all large sections of orchestra and brass. I feel like many of the users who are getting large instances and usage are using things that are a lot more interrmitten as far as polyphony and notes. For example, drum kits rarely if ever hit more 3-4 notes (drums) simultaneously. Pianos are anywhere from 1-6 note chords, mostly. Loops, grooves and such are well........you get the idea. Orchestrations however get pretty heavy as far as polyphony. Especially when done to realistic standards where there are tracks per instrument or section.
I realized that 2 of the string and brass sounds I had been using had convolution reverb settings enabled in Kontakt. Turning those reverbs off gave me a HUGE gain in power. This also seems to relieve some of the CPU spiking problems when using Kontakt directly in PT. In fact, I really see no benefit to using VEP in local machine mode if Kontakt continues to behave on it's own in PT. However, this has me excited again at the prospect of putting a 4 core PC into use that's been sitting idle for a year. That coupled with some experimentation as far as how intensive the sounds that I use are may finally get me the orchestra I've been dreaming of.........where I can just import tracks from a template that are set to use the sounds I like and use frequently and go to work!
I'm hesitant to say my problem has been solved. I'm going to see how much further I get and post back here later.