Grunt not behaving properly.

[palistov]

Yes you can either set him as a hallucination, but I don't know what the default distance is; the distance the grunt will fade to smoke.

Your two choices are to either A) make him a hallucination through script or in the level editor itself, or B) to add an entity collide callback, so that when the grunt enters a certain area, it turns calls the FadeEnemyToSmoke() function