I have just implemented better foot placement using IK with Unrealscript. It uses code from UDN: https://udn.epicgames.com/Three/UsingSkeletalControllers.html
This provides better foot placement than default so the player mesh actually reacts to the varying surfaces rather than just floating across. Although it is not perfect I believe it is an improvement.
After tweaking the values I have come up with something that looks normal I have not yet however managed to get it working well with player movement. For now it works well when the player is standing still - movement resulted in too much uncertainty and would have ultimately lead to more problems.
Here is an example of it in action: