Hey there - not sure on how to achieve it in UDK, but an image-based "matcap" shading would achieve that very easily. It's a very cool look indeed... Brice's shader does that very well. You basically just paint that lightsource as a gradient in the axis representing forward/backwards normal direction.…
That would be awesome indeed! I never figured out what they're doing in the math of the shader, but if I could see a setup with examples textures of the gradient you're talking about, it should be pretty easy to recreate it in UDK. In the meantime, I would honestly suggest finding someway to occlude your model with an AO…