I managed to get a skeletal mesh to work by going into the pawn components tab and in the Details tab, under Collision, I checked:
Collision Presets: Custom
then expanded that and checked:
Collision Enabled: Collision Enabled
Object Type: Pawn
I left everything under the Block column checked, since I have no reason to change any yet.
Somehow it works, though when I tried to do the physics rotations, I couldn’t get pitch and yaw to work at the same time. Roll never worked for me - I thought I had it set up right, dunno what went wrong. I disabled pitch since I want to turn it into a hover vehicle and I don’t really need it. Under physics, I enabled gravity, and gave the pawn lift movement with a jump input. Linear damping works, but making the value >1 doesn’t seem to have any effect. Angular damping has no effect, it simply stops rotating whenever input is stopped.
So, it is possible, though I don’t quite have it working right…