You can increase the number of instances by applying this patch:
diff --exclude CVS --exclude .git -uNr gst-fsl-plugins-3.0.7/libs/vss/mfw_gst_vss_common.h gst-fsl-plugins-3.0.7.modified/libs/vss/mfw_gst_vss_common.h
--- gst-fsl-plugins-3.0.7/libs/vss/mfw_gst_vss_common.h 2013-02-21 08:01:16.000000000 +0000
+++ gst-fsl-plugins-3.0.7.modified/libs/vss/mfw_gst_vss_common.h 2013-05-23 12:51:52.000000000 +0100
@@ -54,7 +54,9 @@
#define FOURCC_FMT "%c%c%c%c"
#define FOURCC_ARGS(fourcc) (char)(fourcc),(char)((fourcc)>>8),(char)((fourcc)>>16),(char)((fourcc)>>24)
-#define VS_MAX 8
+/*TSE: Support 4 x 4 display*/
+//#define VS_MAX 8
+#define VS_MAX 32
#define VS_SUBFRAME_MAX 1
#define ALPHA_TRANSPARENT 0
diff --exclude CVS --exclude .git -uNr gst-fsl-plugins-3.0.7/libs/vss/vssconfig gst-fsl-plugins-3.0.7.modified/libs/vss/vssconfig
--- gst-fsl-plugins-3.0.7/libs/vss/vssconfig 2013-02-21 08:01:16.000000000 +0000
+++ gst-fsl-plugins-3.0.7.modified/libs/vss/vssconfig 2013-05-23 12:53:43.000000000 +0100
@@ -8,4 +8,4 @@
format = RGBP
fb_num = 1
main_fb_num = 0
-
+vsmax = 32