Kontakt Preferences

Type
Translator gives you the option to write to most Kontakt types. This ensures that if you are running a lower version of Kontakt, you can write a file that it will load, as any given version of Kontakt can't read a file written with a higher one. Although, surprisingly, there isn't a whole lot of difference between 2.0 and 4.1 files. Note: although Kontakt is up to version 5, due to NI's protectionist policies of not allowing full access to Version 4.2 and version 5 files, we do not write to those versions, as we would not be able to program modulators or filters. Regardless, writing at most version 4.1 is good enough anyway as verison 4.2 and 5 completely read lower files just fine.
Default: 2.0

Write Default Chunks
When writing a Kontakt file, there are chunks (that is, usually modulators) that an incoming format may not dictate but perhaps you want the modulators to exist anyway for later editing. This option forces those chunks to be written, set to BYPASS, regardless if the incoming format requires them or not.
Default: Unchecked

Write K2 Insts as Small Racks / Write Insts in Multis as Small Racks
A Kontakt file specifies a lot about how the rack looks like and what windows are open. Checking this option forces the entire instrument to be one "single space" rack when it is loaded, whether it is in a Multi or by itself.
Default: Unchecked

Slopes
Most incoming formats don't specify a slope curve between envelope points; these three parameters specify what they will be in not specified.

Master Volume
This is the Master Volume written to a Kontakt instrument when a Master Volume is not specified by the incoming format.
Default: -6 db

Kontakt Factory Library Location
If specified, all Kontakt sample paths written in Kontakt files will reference this as the relative path location, and all samples will be written there.

Enable DFD
This enables DFD (Direct From Disk) setting in all Groups. There are also three options that dictate how Kontakt 2 files deal with DFD, since certain parameters conflict with DFD in Kontakt 2 (Kontakt 3 and up eliminates this restriction).

Non-Ext Sample Options
Newer version of Kontakt do not like sample files without extensions, which happen often on the Mac due to it's older deprecated File Typing system. When converting a format that references samples without file extensions in the name, this option tells how Translator will write the file so it is okay with Kontakt.

Include Effect
Determines the default effect type that goes into all newly-created Kontakt files and also determines if it will use the Global Effects option (in Options-General).

Templates
Since Kontakt is such a big format, encompassing many parameters beyond what other incoming formats offer plus it's own large set of Kontakt-specific parameters, perhaps you want to set a "base template" for a new Instrument, or Script or Group inside any new Kontakt files, instead of just starting with the default "nothing". These options allow you to set this. Checking Post-Conversion overwrites any parameters set by the incoming format.

Write Bank Files As Multi
This option allows you to, for example, make an incoming SoundFont convert into a single .nkm file, instead of separate .nki files for each Preset.
Default: Unchecked

Write Relative Paths
Checking this option writes relative paths for the sample files, instead of absolute paths.
Default: Checked

Consider Velocity In Group Division
In Kontakt, Groups are containers for Zones and they provide the parameters for the Zones. All Zones in a Group share those parameters. Translator's first call is to obtain an exact translation of the incoming format, but sometimes you also care about the cleanliness of organization of the new Kontakt file, because you often want to tweak it to taste afterwards. Sometimes an incoming format will shove Zones with different velocities into the same Group just because it shares the same parameters. However, if you want to edit this Group according to velocity, you wind up altering Zones set to different Velocity values. If this option is checked, Translator makes sure that no Group contains Zones of different velocity values. This makes editing after the fact easier.
Default: Checked

Write as Mac-Type files
When Kontakt ran on PPC Mac's, it wrote header information in Motorola (Big-Endian) format. Although any Kontakt can read any Kontakt file regardless of endian, PPC Kontakt's can read in PPC-type (above, Mac-Type) files much faster. Check this if you want to create Kontakt files of this sort.
Default: Unchecked

Reference Source Giga/SF Files
Before Kontakt 2, Kontakt had a cool feature that no user could get to, to reference samples in other containers - in this case .gig files and .sf2 files. Checking this option references those containers and does not write new sample files; remember this only applies if you have Type set to Kontakt 1.5 or less.
Default: Unchecked

Group to Incoming Groups
Many new modern formats use the Group concept to contain their Zones, and often these Groups are named. Again, Translator's first call is to obtain an exact translation of the incoming format, but sometimes you also care about the cleanliness of organization of the new Kontakt file, because you often want to tweak it to taste afterwards. Check this option if you want Translator to force the incoming Group structures to be preserved, and also named accordingly. This may compromise a perfect translation, sometimes it doesn't matter.
Default: Checked

Collapse Tuning
There are 3 levels of tuning; Instrument, Group, and Zone. Sometimes an incoming format comes in with the tunings separated, sometimes not. If this option is checked, then any separated tunings are collapsed into the Zone, instead of being spread into the Groups and Instruments.
Default: Unchecked