I am using Windows XP, 1.60 Ghz processor, 992 meg of RAM, MIDI Yoke NT: 1

All the MIDI seems to be in order with directions followed from the manual.  I can click on a staff and hear the correct sounds coming from the Kontakt player so its mostly working, but when I try to play a file by pressing the spacebar, or using the playback controls, there is no sound.  Thoughts?

Check your ins and outs.  Set Finale to go out to #5, and VDL2 in on #5. 

Doesn't matter that it's #5.  Just try it.  ;)

Fixed.  From what I can tell, I have to start Finale first, and then VDL:2.  It also seems to run into problems if VDL:2 is minimized. 

I'd also recommend you check out the ";tuning tips"; for XP audio at:
http://www.musicxp.net/

Some great hints there that most regular XP machines aren't tuned for.