bullet holes again

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I was about to slag you off for posting a big white picture, until I realised it was the reply box.
Err meanwhile back to reality, use linepick and use a lower radius. And then align it to the picked Normals.(PickedNX) with allign toEntity.

Don't use regular sprites, they automatically face the camera, so create a quad/regular entity and use that. What you're after are called decals btw, in case you want to read up on some tuts.