Very nice.  Can you do a test for me? Just below this line:

                    hitpoint = mesh2.mesh.CorrelateToNearVertList( vi, mesh1.mesh, close_index )

...try adding these 2 lines....
                    if not hitpoint.Valid:
                        hitpoint = mesh2.mesh.CorrelateToNearVertList( vi, mesh1.mesh, close_index, 0 )

...in other words, if it fails with the averaged normals, try again without averaging, then just let it fall through as usual.  The idea is that the non-averaged normal might get a hit where the averaged ones are failing.  If this gives better results on the eyelid area, I can do the multiple testing internally.

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