Seems to work just fine. Kray renders whatever the viewport shows, so if your viewport shows displaced characters (be it MDD or otherwise), Kray should render it that way.
Excellent, thanks.
I just bought Kray last week, and I'm very impressed with it, I've not tried an animated scene yet though. That's where LW's GI falls down completely, and Fprime isn't so hot on GI interiors. Hopefully Kray will fill the gap.