Foremost thanks for the update on the kinematic character controller - it now collides with dynamic objects totally wonderful.
Unfortunately I'm having some erratic behavior with the controller.
This screen shot is just one of them:

See how the capsule shape is standing in the middle of the structure.
My step height is 0.15 if that helps. Character's width is at 0.3 and height at 1.0.
The character would jitter if it goes up the steps as well.
Also had to modify the m_addedMargin on btKinematicCharacterController to 0.1 so my character would slide (jitter happens as well, not smooth at all).
My scene is using bvhTriangleMeshShape and when my character starts to collide with the scene my FPS drops significantly (very noticeable, similar to the vehicle).
If playing with the values/properties of the btKinematicCharacterController would help please let me know. Perhaps the btKinematicCharacterController works best with the btConvexHullShape which the demo uses?
Thanks.