Here's some basic ideas when making materials in Unreal Engine 3... his full list of tutorials include topics like scripted content streaming.
Materials 1 - Basic
Materials 2 - Intermediate
Materials 3 - Advanced
The materials aren't necessarily *harder* -- just a lot more nodes and harder to learn from until you understand what's really going on. If you ever used Hypershade then it's pretty damn obvious for you.
Acceptable Nodes in Material Editor
Outdoor Water (example)
Indoor Water (example)
Maybe that'll tempt people looking for a new engine to play around with XD
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