I've been trying to create a descent scene in UDK on and off. And my approach would be to model the entire scene in a modelling program (I use Blender) And texture all of that and import into UDK as a single static mesh. But I don't think that is the right approach. I've seen tutorials that use a combination of BSP brushes (I find them quite difficult to use) and static meshes. But they model everything individually and then import them into UDK to be placed however they want. I'm trying to make a Star Wars themed Apartment as a scene in UDK.
1. Is importing the entire scene efficient or should I model each individually and assemble it all in UDK?
2. If you have any tips/experience or tutorials on making scenes in UDK please share.
Here's my scene in blender:

And to show that I have some experience in modelling you can look at some renders I uploaded.
http://s287.photobucket.com/albums/ll156/Dagon14/
Replies
1) have a look at the example scenes that come with UDK. They show how epic usually makes levels and are great learning tools.
2) read this part of the wiki:
http://wiki.polycount.com/CategoryEnvironmentModularity?highlight=%28%5CbCategoryEnvironment%5Cb%29
3) you can also download scenes from various places such as this scene from tor frick:
http://www.torfrick.com/ScifiLab.rar
and they can be very useful for seeing how other people do certain things