How do I get a sphere to bounce of a cube at an angle

There are syntax errors in the second script above. OnTriggEnter() is nested inside of Update(). And I don't see that the smoothing code is necessary. You have the scripts "named" backwards...the first script is for the paddle, the second for the ball. Is this your code or something you borrowed elsewhere?

One way that may get you what you want in a way that feels realistic is to impart part of the velocity of the paddle to the ball. See the OnCollisionExit() in the following modification of your code:

 #pragma strict
 
 var hasreset = false;
 var cSpeed:float = 10.0;
 var sFactor:float = 10.0;
 //two vars to hold score
 var frictionTransfer : float = 0.15;
 static var playerScore:int = 0;
  
 function Start () 
 {
     hasreset = true;
     playerScore = 0;
     yield WaitForSeconds (1.0);
     //rigidbody.AddForce(Random.Range(-5,5),0,0);
 }
  
 function resetball ()
 {   
     yield WaitForSeconds (1.0);
     GameObject.FindWithTag("paddle").transform.position.x = 0;
     GameObject.FindWithTag("paddle2").transform.position.x = 0;
     transform.position.x = 0;
     transform.position.y = 0;
     hasreset = true;
 }
 function takescore ()
 {
     yield WaitForSeconds (1.0);
     playerScore --;
 }
 function addscore ()
 {
     yield WaitForSeconds (1.0);
     playerScore ++;
  
  }
  
 function OnCollisionExit(collision : Collision) {
      if (collision.collider.tag == "paddle") {
          rigidbody.velocity.x += collision.gameObject.GetComponent(Paddle2).velocity * frictionTransfer;
     }    
 }
  
 function Update () {
 
     //checking bounds for score and reset pos of ball and paddle
     if(transform.position.y <-5.67)
     {  
        resetball();
        if(hasreset == true)
        {
          takescore();
        }
        hasreset = false;
  
     }
     if(transform.position.y >5.67)
     {
        resetball();
        if(hasreset == true)
        {
          addscore();
        }
        hasreset = false;
     }
 }

And the calculation of the velocity in this paddle code:

 #pragma strict
 
 //Variable to hold paddle speed
 var speed:int = 10;
 
 private var lastPosX : float;
 public var velocity = 0.0f;
  
 function Update () 
 {
     if(Input.GetKey(KeyCode.Escape)){
        Application.LoadLevel (0);
     }
     //player input
     if(Input.GetKey(KeyCode.LeftArrow))
     {
        transform.Translate(Vector3(-speed,0,0) * Time.deltaTime);
     }  
     
     if(Input.GetKey(KeyCode.RightArrow))
     {
        transform.Translate(Vector3(speed,0,0) * Time.deltaTime);
     }
     if(transform.position.x <-7.88)
     {
        transform.position.x = -7.88;
     }
     if(transform.position.x >7.88)
     {
        transform.position.x = 7.88;
     }
     
     velocity = (transform.position.x - lastPosX) / Time.deltaTime;
     lastPosX = transform.position.x; 
  }

Note the OnCollisionExit() code requires the paddles have the 'paddle' tag set for both.