Okay, with that kind of code you don't want to use an "ENTITY* =" definition like I showed (that creates a view entity that only functions in view space). The way you're doing it has advantages of easier lighting (dynamic lights interacting with view entities can be problematic), and the disadvantage of slightly more difficult to code.

Some things I noticed:
-- What's with the "wait(0.14);" in the firegun() function? Use negative numbers for seconds (or fractions of seconds), eg "wait(-0.14);".
-- You also want the bullet to have the event-flag "ENABLE_ENTITY" -- ENABLE_IMPACT only triggers when another entity moves into the bullet. ENABLE_ENTITY will trigger when the bullet hits another entity. If you have level blocks, also use ENABLE_BLOCK. You don't really need ENABLE_IMPACT at all.
-- I have no idea why you're tracing to 75 quants in front of the camera in the bullet action.

I hope those points are useful!

Jibb