Independant Midi Channels?

Under ‘Instrument Settings’ / ‘Midi Properties’, If I set track 1 as Channel 1, then it seems track 2/3/4/5 etc also has to be channel 1? How can I set up different channels for each track? I want to sequence my hardware from Renoise.

This is how Renoise works, unlike most other sequencers the MIDI channel is associated with the instrument, not the track.
So you’re good to go if you create a number of instruments and choose channel 1, 2, 3… for each of them.

So if I understand correctly, that means that when i try to use kontakt as a plug in, and within one instance of the kontakt plug in, i have several sampler instruments set up on different midi channels (bass on CH1, guitar on CH2 etc, I cant play those individual sampler instruments. I can only play the Kontakt sampler instrument which is related to the midi channel chosen for the Renoise instrument.
(hope my question makes sense)

Thats no problem.
You can share the same plugin instrument among several instrument slots in renoise by using instrument aliases.

To find out how exactly that works do a search for “alias” here.

yeah i just found it myself aswell
it is explained here
http://tutorials.renoise.com/Renoise/UsingVST