FractalTextures as Skins and MultiSkins

Ok, post this at Nerve Damage's forum (www.nervedamage.com). Hopefully you'll get some good answers there.

As far as I know, skins don't layer over each other like shaders. Multiskins are used to define separate texture maps for separate parts of a model. For instance, in UT the head of a model uses a separate texture map than the torso, which allows different faces. To utilize them properly, the surfaces etc. must be set up when the mesh is imported to a class(I really don't know the details).

As for the procedural textures, I once played around with making procedural (fractal) textures for Unreal when it came out without very good looking results. You'll see why if you play with the fire engine. Basically, properly mapping the effects is very difficult and the engine doesn't account for seams in the texture map.
To try your hand with it, all you need to do is create a new texture (Browse textures and click new button, select class Fire for Fire type effects, Ice for Ice, etc.). The Fire engine editor pops up and viola! you can mess around to your hearts content.
Use Fire Properties>SparkType to play and go through the properties to see what else you can do.
TechPages (http://unreal.epicgames.com)has documentation (Fire Engine/Algorithmic Textures).
I know of no way to import a background for a procedural texture overlay(like a skin grid) but then again I never really tried to hard.