How to Import Qubicle Meshes with UDK
Unreal can read .fbx, .dae (Collada) and .obj files exported from Qubicle.
To import your mesh, right-click in the Content Browser window and select Import. If you are using textures make sure that the materials folder is imported, too.
Using Vertex Colors
If you want to use vertex colors set Vertex Color Import Option in your Mesh Import Settings to Replace.
If you exported your model with a texture then in your Texture Import Settings set Filter to Nearest and Compression Settings to UserInterface2D.