Creating Flags/Cloth

[Dakatsu]

What steps would I need to add a flag for instance, and also to add physics to static meshes as well.

[Solid Snake]

Cloth simulations is only for skeletal meshes. You assign the vertices that you would like animated as cloth to a bone, and setup the appropriate settings within UnrealEd.

Use KActors or physics actors within Ued and give them the static mesh.