I tried very thing but it is still not working. These are the following steps I took in trying to figure this out.
*Installed Visual Studio 2008 (tried the same steps with 2010)
*Restarted the computer
*Downloaded and installed the latest version of nFringe
*Create a new project, UnrealEngine 3 Licensee Project with the \Src directory and "Create directory for solution" being unchecked.
*Cut the session files and pasted them into \Src
*Change the General UCC properties and also the Debug to \win32\UDK.exe
*Created custom folder and a subfolder named "Classes"
*Created UnrealScript File in the "Classes" subfolder
*Tools > options > Text Editor > File Extension = empty
*Tools > options > Text Editor > All Languages > Statement completion has all 3 statements checked
*\UDKGame\Config\DefaultEngine.ini added my custom folder correctly
*Activated nFringe License
Still does not work what so ever. Assistance with this issue would be greatly appreciated.