Pretty simple question, I'm guessing the answer isn't nearly as straight forward. I don't understand UDK's rendering process very well, but I'm guessing that you'd have to throw lightmass out the window and use fully dynamic lighting?
Not necessarily re. fully dynamic lighting. For the arc you could easily use a video sample of actual lightning. Then just add a dynamic light that you can turn on and off with matinee or kismet and a large enough radius.
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