More info here
Scene files that contain 3 UT3 characters in a format that can be exported via the fbx format into the UDK game engine. These characters have skeletons that are compatible with the built in animations.
Links to scene files for each character
Note: 1m in lightwave = 100 unreal units
Original 3dsmax files - http://udn.epicgames.com/Three/UDKCustomCharacters.html
PSK files - download/ut3pskfeb2009.zip
Example fbx skeleton from Epic - http://udn.epicgames.com/Three/FBXAnimationPipeline.html
FBX files from trueSpace - download/UT3_FBX_Characters_from_Truespace.zip
At this point the built in animations will be identical between a direct psk import from the original files and the fbx import from lightwave.
Looking through the built in animations I don't see any that have animation on the b_Root bone which is a null in the original files. Truespace created it as a bone because it's skeleton structure can only have joints and bones.
Name the mesh layers with unique names
Import to UDK override the name so the layer names are used as is, instead of combined with the file name
Layer name of UCX_ and UBX_ for collisions is supported
The textures exported from Lightwave should be in the same folder as the fbx file or use the embedded textures option.
The embedded textures export option will work even if the textures are not in the same folder.
All meshes must be UV mapped. All textures must be size power of 2.
UV maps don't have to be assigned to a surface inside Lightwave 11.6 to export.
Lightwave exports FBX 2012 without smoothing groups.
A lack of smoothing group export is fixed with the fbx smoothing application. The output of the smoothing app is an FBX 2013 file.
Node materials do not export and the following texture channels will import into the UDK editor materials:
The bump will be compressed with TC_Normalmap settings, all the others will get TC_Default compression. UDK will interprete the bump map texture as a normal map.
To get the skeleton as skelegons in modeler to use as a guide: