I don't usually like to just hand people capx's, but I think in your case, it will benefit you to try and learn from some of the things I've changed..
A few notes:
There is no need to put "every tick" everywhere. Any event that is not a trigger (with the little green arrow) happens every tick.
Also, every tick means 60 TIMES A SECOND.. so you can imagine that creating objects 60 times a second is not going to work well, performance-wise..
and lastly, I think you should do some research on C2's "picking" system.
Anyway, I hope you can learn from this:
https://drive.google.com/open?id=0B1Aaz ... lpjd2dNMTA
If you have any questions, feel free to respond here or PM me.