Object Instantiation

I am still pretty new to Unity, and programming in general, and am having trouble with a drag control prototype script.

The easiest way to describe how I would like the script to function is almost like Angry Birds in reverse. You would touch the player object, and that would instantiate a targeting reticle. That reticle then followed your drag exactly, but has a max distance away from the player object. It would be like the slingshot in angry birds, only the slingshot would be the player character and the direction you dragged the bird is the direction you would move, with the force varying on the distance away from the player object you dragged. And, like angry birds, you can only drag a certain distance away from the player object before the target was fully extended.

I hope that makes sense. This is the script I have attached to the player object:

 #pragma strict
 
 private var startPoint : Vector3;
 private var endPoint : Vector3;
 var maxDistance : int;
 private var distance : Vector3;
 private var actualDistance : float;
 var direction : Vector3;
 var hit : RaycastHit;
 var ray : Ray;
 var thrustSpeed : int;
 var smashSpeed : int;
 
 var target : Transform;
 var player : Transform;
 
 
 function Start () {
 
     smashSpeed = 100;
     thrustSpeed = 50;
     maxDistance = 15;
 
 }
 
 function Update () {
 
     if (Input.touchCount == 1) {
         
         var touch = Input.touches[0];
         
 Debug.Log("Detected Touch");
         ray = Camera.main.ScreenPointToRay (touch.position);
     
         if (Physics.Raycast (ray, hit, 50) && hit.transform.name == "Player") {
              
             switch (touch.phase) {
             
                 case TouchPhase.Began:
 Debug.Log("Hit!");                    
                     startPoint = transform.position;
                     var liveTarget : Transform;
                     liveTarget = Instantiate(target, transform.position, transform.rotation);
                     endPoint = liveTarget.position;
                     distance = (endPoint - startPoint);
                     actualDistance = distance.magnitude;
                     break;
                     
                 case TouchPhase.Moved:
                     if (actualDistance > maxDistance) {
                         direction = distance.normalized;
                         endPoint = startPoint + direction * maxDistance;
                     }
                     break;
                     
                 case TouchPhase.Ended:
                     
 Debug.Log("Touch Ended");                    
                     Destroy(liveTarget);
                     break;
                     
             }
         
         }        
     }
 }

And this is the script I have attached to the target prefab that is instantiated (in theory) in the beginning of the touch phase.

 #pragma strict
 
 function Start () {
 
 }
 
 function Update () {
 
     if (Input.touchCount > 0 && Input.GetTouch(0).phase == TouchPhase.Moved) {
         
         var touch = Input.touches[0];
         
         transform.Translate (touch.position);
     
     }
 
     if (Input.touchCount == 0) {
         Destroy(gameObject);
     }
 
 }

Right now, the console shows that it detects both a touch and a hit, but it never instantiates the reticle, let alone moving it around within the confines of the script. Any idea as to where I am going wrong?