None of the posted fixes seemed to do anything to remove the shadow banding on the characters, so I spent 5 hours testing almost every setting in MonkeyEngine.ini to fix it.

So, as usual with Unreal Engine games, you have to go to the MonkeyEngine.ini file which is located at C:\Users\<YOUR USER NAME>\Documents\my games\UnrealEngine3\MonkeyGame\Config (or somewhere around there - look for it).

Open it with your favorite text editor (I use Notepad++) and search (Ctrl+F) for "ShadowDepthBias" without the quotes.

Change it from 0.012000 to 0.175000.

Save the file and mark it as READ ONLY by right clicking and ticking the "Read-only" option.

Start the game as always.

I have done all the testing in the opening scene of the game. I will play it and if I find any problems I will update the guide.

Otherwise, that's it.
Thanks for reading.