Put the bullet behind the gun and hide it. Then when you are ready to shoot, show the bullet again. When the bullet hits its target, use the sensing block "when touching __" to detect the bullet and have the object hide. You can see this in two of my games if you download them and look at the blocks http://scratch.mit.edu/projects/paulmedwal/547 and http://scratch.mit.edu/projects/paulmedwal/455
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http://scratch.mit.edu/projects/dmagee/3464 is another example of this. It is a simple hide the bullet until fired, then when it hits the object, hide the bullet, change the costume to a explosion, and spin and grow/shrink the explosion to make it look like its exploding. Then hide the explosion. (The growing is only done on the player's ship, the rest just spin)
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