It sounds like you would put the player actor in a group, and then select that group with the Select Transform Lookup Group menu option. To test, I would first suggest making a moving box (just make a Matinee track move a box back and forth), and put that box in a group, and trying targeting your projectile at the box.
I wouldn't expect Matinee would have very good performance for gameplay, but I suppose it's worth a shot if you don't have UnrealScript experience. Also make sure to check out the MatineeLookupTest.ut3 test map that the webpage references, assuming it's part of the UDK.
Last but not least, if you don't get good answers from this thread, try asking in the dedicated UDK thread (
http://www.neogaf.com/forum/showthread.php?t=430197) since someone there might know much better than me!