You are right. It will be good opportunity to actually clean up my damage code in any case.
Anyway, I looked at UT sources, and there is indeed, almost exactly what I need implemented in using Canvas. I took courtesy of reimplementing it, in my game with some animations and Canvas->Project to display it in world.
Although I would rather do it using Slate, I had almost everything working in Slate, expect part of displaying widget in proper location.
It would be much easier if Slate widgets would directly support something like Canvas->Project/Deproject.
But thanks for setting me on track! (;.
Edit:
As for question, why you want to do it in Slate. Well:
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To learn it
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Because I have everything else in Slate, so I would be more consistent.