The Playback Configuration looks correct.
1) Does VDL playback in stand alone mode?
2) Do the TriggerTest files playback?
3) Are you using a copy of the Template .sib file with instruments being selected from the "- VDL Template 7.0a" Ensemble?
Oh, VDL inside Kontakt Player does not look right. From Kontakt Player, remove VDL, then add it back.
I've set everything up the way the readme says.
There are non-Template setup issues that can arise. The Readme assumes you have Sibelius and VDL installed correctly. Looks right now the issue resides with the VDL setup.