...unless it's been included in the most recent upgrade, alternate textures won't work for characters.
Assuming that this is still the case, I've had some success pulling off the illusion of killing an enemy, and leaving a damaged body behind.
To use this method:
1. The character will need to remain stationary (
turrets work fantastic for this method)
2. Place the damaged version of the enemy in the level. This entity will not spawn at the start of the level, but will be called by the character, when it is killed.
3. Using B Key registration, place the dynamic character over the top of the damaged version of itself. Scripting and setting the damaged version as the IFUSED target will be required.
When the character is killed, simultaneously it will disappear, the damaged version will appear (
complete with alternate texture), and it will provide a very convincing illusion...