To use the Scaling outline material you need to use my custom fz character material. It wont work with the vanilla character material.
Setting up the mesh for the outline is pretty easy.
All you need to do is clone your character mesh (first material id) and remove doubles or weld verts. Then aplly the second material id to it and youre done. First open up the text file thats called Scaling_Outline_by_Mastaklo.txt Copy all the text thats inside it.Create a new material in Unreal Engine 4 and open it up.Hit ctrl+v to paste and you should get something like this.

Move the Result node in the box that says do the following changes

whit the result node selected change the settings on the left according to the comments

Connect the material according to the comments

Thats it for the Material. Now you can go ahead and load your custom material.If you dont know how to do that yet go here.