Yea, I did some research after I made this post and BSP brushes are definitely not great for light bleed. As an aside, it also fixed the blood issues once I learned more about the UV channels for the static meshes (that is, the BSP brushes don't have permanent blood splatters on them). I'm still very new to UDK, so bear with me.
So, I learned how to convert brushes to static meshes and I'm going down that route whenever I need to make any sort of custom geometry.
Here are my problems though:
1. I don't see a good way to modify the geometry of the static mesh after I've converted the BSP to a static mesh. Is there a good workflow for this aside from just recreating the whole thing again?
2. It crashes... a lot. The most common crash is after I've converted the BSP to a static mesh and then I try to place the static mesh in the world (to replace the BSP that I converted), it'll crash. The problem is that even if I just saved, I have to reconvert the BSP again after I've relaunched the editor. Seems like a giant pain.
3. Texturing a static mesh doesn't seem to be as robust as a BSP surfice. Is there something obvious I'm missing here? I'm talking about the options you get when you select a BSP surface (i.e. rotate, scale, normalize the texture) as well as the ability to select individual BSP surfaces to texture rather than the entire mesh. Right now, I'm just texturing the BSP before converting it to a static mesh, but again - if I change my mind later about the texture... going back to #1, there doesn't seem to be a great workflow.