Johxz- Yes I found that forum post just after my last post here. obviously something is wrong with the setAimObject. Thank you for the link I will look into that as a possible solution/band aide. I was planning on finding other target solutions anyway, I suppose this just bumps up the timeline on that.
rlranft- Thank you for showing me your solution to this issue, I will check into using that or something similar as a solution as well as checking out the eyeoffset. As an aside to you I will be doing some of your tutorials next, just wanted to thank you for providing them.
Out of a bit of concern is this going to be fixed soon? It does not bother me personally much, as I have been playing around with Torque off and on for years now, I love the engine. Spent most of the previous time learning about art assets and level/mission design, looking into the AI stuff now. I could see how a Torque beginner might find this extremely frustrating as the setAimObject is one of the few actual AI functions in Torque. To find it broken could turn off beginners from using the engine or learning more about it. I consider myself a beginner with Torque still, but I am happy with the engine, and I view problems like this as another way to learn more about Torque, and Torque scripting. I have been having a blast learning about basic AI scripting and I am now designing my own.
Thank you for responding you have both helped me out a lot.