Well last version of udk when I select FlatTessallation the preview goes crazy and in game too. But when I go to the game and switch to the editor works fine, I close the game and other time crazy.
UDK + DX11 causes a TON of problems with the viewport. You can get everything from meshes turning into blue points, cubemaps failing, spec shimmering ... and the problem you are having. I want DX11 to work but its just so glitchy right now. As long as it looks fine in game I wouldn't worry about it too much.
What r4ptur3 said. I don't think DirectX11 is fully integrated with UDK, so there are still a lot of problem with the features, especially tessellation. If it works in game fine, then I would just leave it, otherwise you may waste too much time finding something that works for tessellation.
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