Yes it is a bug,
When Kontakt is loaded in a project within Cubase SX 3, GS will not load extra instruments anymore! And damn i was hoping and praying that the two would have worked together smoothly! Since both are having their strong points!
I don't know now which of the three related programs is the cause for this problem. It looks like it is GS since Cubase and Kontakt are working fine together.
Anybody else experiencing this problem!