I just did something that may seem really stupid but it has SOLVED my problems with CF and KxDriver.
Instead of using the Audigy2 with KX as my output device...
I re-enabled my on-motherboard sound device. And ran the line-out from my motherboard into the Audigy's line-in.
This way, CF only has to deal with the onboard sound (in my case, an Nforce2 / Realtek chip) and KX is free to go on its merry way doing exactly what it's supposed to do: processing input sources.
This fixes my issues with resuming from hibernate, and I've skipped tracks dozens if not hundreds of times without hanging.
I had this theory that the problem is that CF doesn't close channels in a KX-friendly manner, and as a result eventually the KX device gets overruns of some sort. I'm no DirectX programmer so bear with me.
Rather than having "FXBux0/1" (Windows sound output) as the source to my processing chain, I'm using "AC97 LineIn" so Kx never has to open and close sound channels... it just deals with the continuous stream of WHATEVER comes off the onboard sound chip.
Flawless. Except I really dislike the idea of going Digital->analog->digital->DSP->analog. Way too many steps.
Next step is to connect the motherboard's SPDIF output to kX's SPDIF input. If I can do this, everything stays in the digital domain until it goes out to the amps. I can live with that. And it should work just as well. Just don't have the right connectors yet, so I thought I'd try it this way.
If you're using KX and ready to abandon Centrafuse (as I was) this is a HUGE step away from all the bugs we were dealing with.