I have created a small example for the Vive which allows you to pick up objects by attaching them to the hand. When the attached object is a physics object which is large enough to get under the characters collider, the character shoots into the air.
Disabling collisions on the Character from blueprints fixes the issue, but allows the Character to drop through the level when I teleport and requires more code enabling and disabling collisions. I could also disable physics on the held objects but I still want them to interact with other objects.