I have written a Kontakt 2 script called FX Morph. It lets you specify one set of effect parameters to use when the modwheel is at the minimum, and another set of effect parameters to use when the modwheel is at the maximum. The script then morphs between these two sets of effect presets as you move the modulation wheel.
One can use the script to create interesting transitions. It is free but if you find it useful please consider making a small paypal donation (see link on download page) to support further development. Would be truly appreciated.