I forget what it's called, but there's another 3D format that you can import in the UDK. You might try that.Yeah, I unwrapped it and reapplied the texture but the material itself doesn't apply when I'm working in the UDK (under LOD info) so I'm obviously doing something wrong here. Oh and sometimes the static mesh won't show up in my 3d viewport unless I press G, but it's usually visible in the 2d viewports. Weird.
Have you followed along with some internet tutorial that uses textures? It'd probably be good to find a really basic tutorial, video or otherwise, to import a textured cube. You can import from Blender, or you might be using professional software, or whatever, and there should be tutorials to match that walk through the steps. I don't really remember whether I got automatic textures in UDK or whether I had to manually click the materials in the mesh and assign the textures.
*edit* Actually, it'd kind of key to know exactly what program and version you are exporting the ASE from. We might be able to give you something more detailed that way.