ADDITIONAL INFO:
I believe you can also specify the material the static mesh should use by putting the name of the Unreal material into the MATERIAL NAME in 3D MAX. For example, an Unreal material named 'myMaterial' would be referenced by the static mesh in MAX by naming the appropiate material 'myMaterial'. The name goes into the BASE material or subobject - NOT into its diffuse section. That is, enter the name on the dialogue where you can specify specular, diffuse, opacity, etc.
Furthermore, it seems that if you change the material name and then re-import over an existing copy of the mesh, -it will not update the material!!-
You must first delete the mesh in the package, and then re-import; or else import to a new name.
Anyway, this is handy as it lets you specify a default material your mesh should use, saving the process of having to set the material each time you enter it into the level.
I spent some frustrating hours wondering why my meshes would sometimes have materials and sometimes not, and I think I have nailed down the process now; though if anyone finds any problems with this method, please let it be known so more investigation can take place (what mostly threw me was how Unreal would not update the material reference when re-importing an existing mesh).
Anyway, good tutorial also!
merkaba48
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