Sorry, no i didn't run your code, i was in a bit of a hurry, so i just pulled that link from my bookmarks... LoL...
After looking at your code, and actually running it this time... I have deduced a solution HAHA!
You need to set the position of the "bullet" plane so that one end is at the the position of the "Player". Somehting like:
Position Object 4,(Object Position X(1)-(Object Size Y(4)/2)),(Object Position Y(1)),(Object Position Z(1)-(Object Size Y(4)/2))
You then need to use Scale Object to change the length of the object... I suggest making the original bullet 100 units long (which you have done) then using the distance of the player to the cross-hairs to stretch the object...
Stretch Object 4,Object Size X(4),dist#,Object Size Z(4)
Note that both of those snippets should be in the main loop and that they may not work as desired, but that is a start...
Hope I Helped...

Team EOD :: Programmer/Logical Engineer/All-Round Nice Guy