Nils Liberg has released version 1.1 of the KScript Editor, a free editor (with an integrated compiler) for Kontakt 2 scripts that is much more powerful than the internal Kontakt editor.

• Syntax highlighting of script code.
• Indent/dedent selected code (you can indent/dedent several rows with one key press).
• Automatic re-indentation of selected code.
• Pressing F5 runs compiles the code (this lets you declare and use user-defined functions) and puts the code on the clipboard, ready to be pasted into K2. The compiler reports common errors and automatically moves the cursor to the right place to let you fix them.
• Pressing F10 exports the script to syntax highlighted HTML and automatically opens the page in your browser for previewing.
• Code completion (pressing Ctrl+Space fills in the rest of the current word).
• Call tips (pressing Ctrl+Shift+Space shows documentation for the function being called).
• Parenthesis matching. When you write ")" the corresponding "(" is highlighted.
• Goto line function.
• Ability to switch between fixed width fonts and variable width ones.
• Indentation guides.
• Ability to choose number of steps (spaces) of indentation and an option to re-indent the whole script when this setting is changed.
• Unlimited undo / redo.
• Support for all variables and functions in Kontakt 2.1.1.
• Compiler can optionally output compacted code (reducing it's size by >50%) to overcome a Kontakt bug causing slowdowns for large scripts.
• Extended syntax to allow variables to be organized in families.
• 'end ...' lines can optionally be automatically added and there's support for automatic indentation of pasted code.

KScript Editor is available for Windows and Mac OS X and it is free.