Morph targets and .FBX importing
In recent versions of UDK, importing of characters via the FBX format has been increasingly supported. The best way to try out this approach is to first jump to the official documentation from Epic Games on the Unreal Developer's Network: http://udn.epicgames.com/Three/FBXImporterUserGuide.html.
In the export dialog from 3ds Max there is the option to include Animation and Skinning and Morph Targets. When importing an .FBX asset to UDK, the import dialog offers the same options, including StaticMesh only import from a rigged mesh.
Like other software, the FBX file format is updated from time to time. Prior to December 2011, UDK did not support FBX 2012, so it is advisable to use a current version of both 3ds Max and UDK. With older versions it is possible to switch the FBX export to an older variant when exporting the model. which can be done in the Advanced Options | FBX File Format | Version roll-out.
How to do it...
In 3ds Max open PACKT_FemaleMesh_Idle...