Not to worry, I found a really straight-forward explanation on the Sound On Sound website. Here's the relevant bit and a link to the whole article in case anyone else is struggling with that aspect.
Let's Get Multitimbral
In case you're wondering why I used Cakewalk's Rapture in the first example, it's because it has the 'Live mentality'. Rapture has six different 'elements' (basically, voices) that offer lots of looping and tempo-sync options, and can be set up for multitimbral operation so that each element receives data over a separate MIDI channel. When loaded into Live, this allows a variety of MIDI-based looping options that complement the way Live treats digital audio.
Anyway, taking advantage of this requires setting up Live for a multitimbral synth. In this instance, the 'MIDI + instrument' track becomes a kind of container for the soft synth, and is fed by multiple MIDI tracks (one for each channel you want to address). As an example, we'll set up Live to play back three MIDI tracks into Rapture elements one, two, and three, which are set to those respective channels.
Create the MIDI instrument track, which we'll call track one. I generally set this to No Input to avoid confusion, as I want to add inputs only from other MIDI tracks and create as many MIDI tracks as there are multitimbral channels to be driven. In this case, there are three. Set the input for each of these MIDI tracks as desired.
In each MIDI track's upper MIDI To field, select the track containing the instrument (in this case, MIDI track one).
In the lower MIDI To field, assign the MIDI output to the desired instrument channel (in this case channels one, two, and three for the three element channels). Now set the Monitor switches for the three MIDI tracks to Auto. If you record-enable a track, it will send the incoming MIDI data to the channel that you have just selected, and of course, you'll also be able to record this into the sequencer.
Now you can record as desired into the various tracks, and play them all back when completed into the MIDI Instrument track.
http://www.soundonsound.com/sos/jul06/a
h_0706.htm