Comments - Dimanjy

Just make a gameplay video with a real player. You can split the screen in two parts: first - gameplay, second - the player plaing your game. Everyone will see the interaction of player with the game. I think it will be enough for understanding the Stay Dead gameplay.

I don't recommend you to use any offsets. If your Pawn has one of UDKPawn or UTPawn base classes than it should work fine out of the box. I'm trying not to change any custom properties, because if it's not working than I'm doing something wrong :)

And about part 2 of Your quastion:
When enemy collides whith the player maybe it is worth to check if player is in attacking state. And if it so, than enemies take damage. Otherwise do not apply any damage to enemy (if player is not in attacking state).

You are using PathNodes now, but maybe NavMesh will be the better decision?
I'm using NavMesh and my Pawns just aiming to the floor when reach the player but not passign through the floor :)