Hi,
I wanted to update on this bug report UE-74587. I Noticed that if I scale the high poly mesh by 100 the DistanceToNearestSurface material works fine but at a normal scale, it goes back to being all white.
If anyone finds a workaround or a solution please let me know, it would help a lot with my current project.
I have attached a project containing the Bug found: link text
Thanks,
Iby