Its not just certain instances of a mesh. Its every instance of a certain mesh. The bench that I demonstrate below has this problem for every instance of it. Its not just this one decal, its every decal that I attempt to apply to that mesh.
The material setups have been the same for a while now and this problem popped out of nowhere.
Any help would be greatly appreciated.
I am in the November 2010 build of UDK
Update:
Fixed thanks to a response to this problem on polycount. In the static mesh editor, under LOD info "Enable Per Poly Collision" needs to be checked. I am not sure how it randomly became unchecked, but thats the fix.