Currently the kernel.xml configuration for an InstrumentManager doesn't work.
The fix is to include a newer Instrument version. 1.0 is available on ibiblio, but 1.2 would probably be better.
This is not enough though. As Loom now uses DNA lifecycles internally the excalibur instrument manager doesn't get started properly. The fix for this is to create a wrapper that translates the DNA interfaces to Avalon.
I have patches and a new file to fix these issues. I suppose that the whole instrument system is somewhat untested and I am not sure that it works correctly yet. These patches are a start though. They should work with version 1.0 and 1.2 of IM.
Could someone test them on Loom 1.0-RC1 and an instrumentable application?