Export materials and textures to UDK?

I’m creating models, characters, and animation in Blender 2.57.1, and exporting them for use in the UDK (May 2011 beta) for a 3D game I’m working on.

Is there a way to directly export the materials and textures that you create in Blender to the UDK? Or a way to paint directly on the meshes and then create a UV image from that, so I can save it out and open it in the UDK?

BTW, I know Blender has a game engine, and I’ve played with it some, but my environments don’t display as nicely in Blender as they do in the UDK. If someone knows how to do this, I’d be interested in hearing about it.

Thanks.

Here is the complete tutorial. I have been exporting Blender file to UDK using this method.

@Delphi156
It is better if you bake your textures in blender , and export them to UDK . I usually create my normal map, textures & Ambient occlusion in blender (Bake Option) and Specular Map or Bump through GImp. then import them in UDK.
XNA FBX exporter for Blender 2.57 exports the textuers, normals automatically.

Thanks, ridix and dukejib. Much appreciated.