DK2 Stutters on physical head movement (UE 4.6 / Oc 0.4.3)

Fist thing would be to check your frame rate with console command 'Stats FPS' and also try checking it with vsync off 'HMD vsync'. its a bit hard to say whats going on without knowing what youve got in your scene.

But a few good things to turn off/down would be....

'r.hzbocclusion 0'
'sg.postprocessingquality' 0-3 :0=off
'sg.effectsquality' 0-3
'sg.antialiasingquality' 0-3
'sg.shadowquality' 0-3

also lower r.bloomquality 0-4
as even with sg.postprocessingquality set to 0 r.bloomquality remains at 4.
you can lower it to 1 for a performance increase or 0 to turn bloom off.

Finally you can play with disabling the tonemapper. 'showflag.tonemapper 0' which effects performance
but is somehow tied to bloom and will disable bloom. you may or may not get away with this depending on the colors in your scene(very bright colors will end up being slighty oversaturated).

Lighting:
Dynamic and even stationary lights are very costly try to set as many of the lights to static so the can be baked out.

Reflections:
Again very costly ATM try to avoid if possible.

Finally after all of that you can look at lowering the screeen percentage from 135 down with 'HMD SP'

I.E 'hmd sp 110'

Hi, I encountered a similar problem, and as already noted in reidbaker Oculus VR demo works fine all like crazy, I rotate/move my head , but UE4.4-4.6 image dazzled. At the same time, if I make a turn/move the mouse/keyboard are all excellent picture rendering perfect, so I do not think that the case in the system performance ,opamp, anyway optimization settings does not help. I feel the matter to the Internal Tracking Oculus VR demo runs to 1000 Hz and turns everything is fine , and the UE drops to 100 Hz as like in DK1. Therefore, I thought that maybe once in UE4 can "turn on 1 kHz "? Of course I could be wrong and it's not about that.
P.S. Excuse Me for my terrible English.

What is the output of 'ovrversion' console command?
Which project did you use for testing? Try to remove the 'Saved' and 'Intermediate' directories from that project.
Have you tried to switch between Direct / Extend modes?

Has anyone got to the root of this issue ....

I'm running a fast system and I still get the issue Unreal 4.6.1

i7 x 4Ghz - 970GTX - 24GRAM - SSD etc... Windows7 x64 (latet Oculus drivers etc)

(Direct mode ) is there some default setting we can put somewhere in the system that is always used

I want really to develop in Unreal and just hate the stutter .. and crapo for demoing....

I notice the the "Paris Appartment" Demo had settings files you could drop into the "Appdata" folder...
but this is a little messy !

Any ideas ?

First of all, I'd recommend to switch to 0.4.4 SDK. You can either switch to Oculus integration from github (https://github.com/Oculus-VR/UnrealEngine/4.6) or switch to 4.7 that comes with 0.4.4 out of the box. At least, you should install the 0.4.4 Oculus Runtime (it will work with 0.4.3 SDK).
Next, you should enable fps counter (stat fps) and hmd statistics (hmd stats). FPS lower than 75 causes the stutter. Low FPS is the consequence of too large rendering target (screenpercentage) and scene complexity (heavy post processing, for example). Reduce the screenpercentage (hmd sp 100, for example). This should improve the frame rate. Also try to switch to unlit mode (viewmode unlit) to see if the postprocessing is the culprit.
You also may switch to Extend mode, it could work a bit better due to higher latency.
We are constantly working on improving VR experience in Unreal, as well as Epic Games engineers work on improving rendering performance in stereo.