I'd like to chime in here...
...it is indeed possible to write volume (cc7) and pan (cc10) info on Kontakt's multi-timbral tracks within logic and have them behave as expected. The main problem, as we all know, is that Logic intercepts CC7 and CC10 at the channel strip level and does not allow these to pass through to the instrument itself. The solution, as hinted at in earlier posts, is to use transformers. These handy little things (though not exactly easy to figure out) can be found in the "new" menu within the environment window.
The basic concept is that you need to transform CC7 and CC10 to two unused continuous controller numbers (132 and 133 for instance) which can get through to Kontakt. Then, within Kontakt's "Auto" tab, and "MIDI" sub tab, drag the corresponding CC# to the portion of Kontakt you wish it to control. For example, if you transformed CC7 to CC132, then for each instrument within your Kontakt Multi you would drag (from the list of MIDI CC's) #132 to each of the volume faders on each instrument. Do the same for Pan.
As far as the transformer goes, you need one for each CC you need to change. The cabling would go from the multi-instrument--->first transformer--->second transformer--->instrument channel. Settings within each transformer are the same.. Status = Control, Channel (leave blank), Data Bit 1 = CC7 (or 10), and directly under Data Bit one set to "Fix" and enter the CC you want to change it to (i.e. 132).
Takes some setup, but at least this way you don't have to write your volumes and pans with different controllers than you use with everything else.
Note I have only tried this with Kontakt 3, and I'm pretty sure it works the same way in Kontakt 2, but can't speak for Kontakt 1.