Is it simply impossible for me to not get errors and bugs with this engine?

[MrBigzy]

Did you say you first did it with the level editor, and then put it in the script? I can see three possible problems (just speculation):

1. You set the hallucination script to false.
2. The distance for hallucination was changed in the level editor.
3. Setting the hallucination script to true as well as having it set as a hallucination could cause some error, possibly in the distance that the enemy becomes a hallucination.

If you did set him as a hallucination with scripts, try taking it out and using only the level editor (and remember to set the distance to about 3.5 or so, anything below 3 and he can attack you without turning into a hallucination, or maybe it was 2, can't remember)

Edit: And yea, what Tanshaydar said. If you want him to do the smoke effect from far away, use the script function void FadeEnemyToSmoke(string& asName, bool abPlaySound);