I'm not sure if this works or not. It is certainly "different" : )

The Hammer Dulcimer was recorded using Zoom H4n with its own built-in microphones in multitrack mode.

It sounds interesting to me. Maybe a tad too "crowded"?

I agree Enrico. I have been searching for pleasing ways of adding the dulcimer - and have not found a good result yet.

The passage from 1m57s to 2m18s is one possibility. In that section I turned down the dulcimer volume until it became little more than a faint "ping" in the background.

Another idea could be some short bursts of dulcimer with long gaps between. For example using the passage from 52s to 1m14s, and cutting out most of the remaining dulcimer stuff.

I blame the violinist! Your violin melody is so smooth, flowing, and complete in itself, that it is difficult to add anything to improve the piece : )

LOL - thank you, but feel free to cut any violin if needed. That is, for the sake of the song as a blend.
I'm sorry I cannot help too much in these days: no DSL (am on dialup now), PC broken and fixed this afternoon, busy packing for summer holidays (leaving on 25th), etc... In August I'm going to be more helpful and hopefully everything (DSL, PC, etc.) will work fine again.