For the most part, I've hit a wall with kismet as far as this mechanic goes but the whole deal should be possible once I get into unreal script.
What I've done so far is attempt to get kactors to do damage based on velocity (how fast they're moving) which I was technically able to fake.
I started by attaching a touch-trigger to a simple wall kactor so that when one would touch the wall (or the wall would touch them), they'd start the sequence that'd get the velocity of the kactor and do damage based on that variable (velocity).
The sequence that "got velocity" and did the damage:
The main problem with this is that there isn't a type of ??? float (from what I or others could find at least) like there is for object variables. At one point I started talking to Joe and he showed me his sequence for one of the kismet projects he was working on and mentioned about ext. variables, which could be assigned to floats, and vectors. I tried this (as shown below) but it didn't seem to work....
More tweaking on this with the addition of Unreal Script to come...
On a different note, There were a couple other interesting mechanics that came of this attempt. For one I managed to create a portal that you could shoot through and your weapon fire could travel through it (sequence shown below).
The main thing about this sequence is that it has mostly to do with the settings of the trigger that acts as the event's settings than other attributes, more specifically the class proximity types (as shown in the image above). This mechanic was actually created completely by accident in my attempts to create a trigger that would be set off by the touch of a kactor so I'd have a continously falling object that of that which I could test with once I got the gravity tether working. Though i never found a solution to this personally, one of my peers was able to find such on the internet and posted it in the achievements section under "the fabled catalyst actor". ( Achievements )
Testing and possible future tweaking on this to come....