Your image link appears to not be included so we can't see it. As for the muzzle flashes, Torque has a set of four nodes that need to be placed on the model in order for the full functionality to be met with the following structure:
TORQUENODES is just a container instance where other torque related nodes are stored.
MOUNTPOINT is where your character will "grab" the gun model, although additional player model related changes are needed for individual model points.
EJECTPOINT is where the clip casings are fired out of the gun.
MUZZLEPOINT is where projectiles (And the flash effect) spawn.
EDIT: Added a screenshot of the nodes.