Sorry for the delayed respose. I’ve been on a number of different forums looking for a solution. I missed your post. Your solution sounds more complex than it probably is. (I haven’t worked with line trace yet)
My problem was due to the incompatibility between physics objects and the projectile movement component. I removed the PMC and created a separate launcher to throw the target. Collisions and hit detection are all working flawlessly now.
This issue has been a blessing in disguise, as I was forced to add my own functionality to the launcher, and now have complete control of the launch variables for each target. I even have a remote control, to change the elevation and rotation of the launcher.