CountCollisions always returns 1
Yup, it should - for each bullet that hits the enemy in question. Are you checking each bullet, because it sounds like you're only checking one? The code I posted shows you how to check though lots of bullets (balls in this case) hitting a mesh (a scaled cube, but any mesh would do fine) simultaneously using CollisionEntity - if you can't work out where you're going wrong then post more of your code and we'll mull it over. HOWEVER, for fast moving objects you should take Hujiklo's advice and consider a linepick - it's a much more straightforward solution.