Question: How do I create a rotating mesh ?
Answer: You have to set the RotationRate of the mesh to values different from 0.
It is possible to make an Unreal mesh rotate, no clue yet whether this works with static meshes as well.

Download
this example (263 k) to see a rotating animated horse in a red room.
You have to unzip the file, move siba_animals.u into the system folder of
your Unreal installation and add a line to the UnrealTournament.ini like that
EditPackages=siba_animals
Put this line, where the other EditPackages are defined.