Thanx for the reply oxxnary but i posted this question up on the UDK forums too and receieved a long but helpful reply that solved my problem. Heres the post if anyone in the future is interested.
Some people in my class made this. The only thing I have to add is that you need to Make a " Screenshots " folder in the UT Game folder C
1) You need to have Kismet and Matinee camera tracks. You'll want to have either a console command or a Toggle Cinematic Mode node going on to get the HUD out of there. (The console command for toggling the HUD is toggleHUD. Whoa.) Also make sure your camera plays when the level starts up.
2) Throw in two player starts (Content Browser > Actor Classes tab > Navigation Point > PlayerStart > UDKTeamPlayerStart > UTTeamPlayer Start). In the properties for one of them, go to the player start menu and set Team Index to 1. Also, throw them off to the side so you don't get a player in your capture.
3) BUILD ALL, save your package, and save your level. Make sure the filename for your level starts out with something like DM- so that Unreal recognizes it as a playable level type.
4) Put a copy of your package in the UDK directory. It changes a bit depending upon what version you have, but mine is C
UDK\UDK-2010-04\UDKGame\Content\TestPackages. Put a copy of the level in C
5) Go to C
UDK\UDK-2010-04\Binaries and launch the executable called UnrealFrontend
6) Make sure you're in the Game tab. For Map to Play:, type or browse for your level. For Extra Options:, put this:
-dumpmovie -benchmark -resY=480 -resX=720
I also have No Sound and Multi-Threaded checked ON, everything else checked off. Dunno how necessary this is.
You can also go to the cooking tab, select your map, then at the top hit cook. I'm not sure how much this enhances the capture.
7) Double check you've done everything now! When you're ready, hit Launch at the top. This will start the UDK player.
IF IT CRASHES, something is wrong with your level. You'll need to double check you have everything.
If not, you'll notice that the player is going REALLY SLOW. That's because it's capturing and saving each frame and throwing the screenshots into C
UDK\UDK-2010-04\UDKGame\ScreenShots as bitmaps. Let it do its thing, it's just like letting it render ;P
When it's done, exit out of the player. You now have all the frames and you can put them into Quicktime or something. YEAH wasn't that easy? There's a few other ways to go about it, but this is what seems to work for Christy and I.