Yes, PPE is the way to go, film grain is pretty easy to do, you can in fact animate it with the correct nodes. When you get into crazy nodes, save and save often.
The post process chain you'll want to edit (without jacking the ini file as I'm to understand) is UDK Game - > Content -> Effects -> FX_HitFX -> UTPostProcess_Console Add a material node as the second in the chain (location is important) though you might move it around to the 3rd, but it needs to be early. (edit: because…
Also, if you wanted to get really nifty you could play around with scene depth nodes and give the camera an animatable focusing effect. in and out dof blur and such, though I've never actually set anything up like that, but its feasibly possible, and shouldn't be too much brain strain... shouldn't being the key word...