Continued to flesh out the idea. A couple of working sketches, the messy one is chronologically the first sketch. Everything else so far has been based on it.
You also need to make sure its set as a looping animation. Else it will interp between the end frame and the start. http://udn.epicgames.com/Three/AnimSetEditorUserGuide.html
Another question: If I want to use the Alpha channel of my Albedo texture for something else (non-transparency), is it still safe to import texture as sRGB?