Hello Jon. In my opinion, even when playing with louder instruments the dulcimer still fits nicely into the blend and adds a lot to the overall sound. Assuming you can't use any kind of amplification and are wanting the sound of the dulcimer to stand out, it helps to consider where all the players are relative to eachother and make sure that the quieter instruments are  prominently placed where they wont be drowned out as easily.

Hi kids, just me Jon here again have a question. Not another one, yes it is true, hoping to get some kind of feedback. I have just found a bluegrass group that tries to get together once a month to jam. My question has to do with trying to play along with a  group since the dulcimer is not very loud. Is it better to just jam with other dulcimers and not in a bluegrass situation where you're trying to play with louder instruments. I hope I'm making some kind of sense anyhow. Your feedback would be much appreciated. Take care everybody, keep those fingers limber and thanks again for your opinions.