Strange tearing/frame refresh in DK1 Oculus and 4.10

I have been working for the past 5 to 6 hours trying to get a DK1 Oculus to behave inside of UE4 4.10.2.

My current setup is

Windows 7
GTX 960
Oculus DK1
0.8 runtime
4.10 Engine
Video driver is 361.75

Let me start by saying that the DK1 works fine in the Test scene if my debugging is set to none in the config panel. However in UE4 when I use VR Preview I get a horrible banding/tearing/ghosted frames and strange colors in the right side of the rift only. Because of 0.8 runtime the DK1 is no longer detected as a monitor, in 4.4 it was showing up as one.

In UE4 the Stereo On commands and any command related to HMD does nothing. I cannot alt + enter to go to VR mode. (I noticed this was because of something epic did in 4.9 or 4.10 so It may be ok, but figured I’d mention it.) When I launch in VR mode the editor minimizes, my VR window pops up and turns all white, then it shows up inside the headset and I get the horrible visuals.

If Debug is set to DK1. The preview window instead shows the Stereo View and my headset gets nothing. Also with DK1 as debug I get no head tracking in demo scene. Thats how I was able to get the screenshot.

The strange thing is, this banding happens only in a few projects. In a blank FPS template I cant seem to get it happening.

Please help me. Ive been beating my head against the table trying to get this working for my title.

Thank you.

Just wanted to update some specs.

I am using 2 monitors besides the Rift. I have a 30inch monitor setup to be dual link using 2 DVI->Display port cables to my 960. My 24inch monitor is connected via DVI to my 960 and the DK1 Rift is connected via HDMI to the 960.

Does anyone have any clues or ideas why this is happening?? I read some where that with multi monitors the Rift will use the slowest refresh rate of the two. Both seem to be set at 60hz in my nVidia control panel.

This was caused by UMG. Found out the hard way UMG does not draw stereoscopic when I was working on this.