Projectile instantiation positioning is off.

I made some weapons for my FPS game. A Rocket Launcher and a Machine gun. When I fire them the Rocket/Bullet shoots forward but not out of the barrel of the weapons, it shoots out above. How can I fix this?

Screenshot:

JavaScript:

 var projectile : Rigidbody;
 var initialSpeed = 50.0;
 var reloadTime = 0.5;
 var ammoCount = 100.0;
 private var lastShot = -10.0;
 function Fire ()
 {
  // Did the time exceed the reload time?
  if (Time.time > reloadTime + lastShot && ammoCount > 0)
   {
   // create a new projectile, use the same position and rotation as the Launcher.
   var instantiatedProjectile : Rigidbody = Instantiate (projectile,
    transform.position, transform.rotation);
    
   // Give it an initial forward velocity. The direction is along the z-axis of 
   // the missile launcher's transform.
   instantiatedProjectile.velocity = transform.TransformDirection(
    Vector3 (0, 0, initialSpeed));
   // Ignore collisions between the missile and the character controller
   Physics.IgnoreCollision(instantiatedProjectile.collider, transform.root.collider);
    
   lastShot = Time.time;
   ammoCount--;
   }
 }
 

Projectile JavaScript:

 var explosion : GameObject;
 function OnCollisionEnter( collision : Collision )
 {
  var contact : ContactPoint = collision.contacts[0];
  var rotation = Quaternion.FromToRotation( Vector3.up, contact.normal );
  var instantiatedExplosion : GameObject = Instantiate( 
                                    explosion, contact.point, rotation );
  Destroy( gameObject );
 }

Please can some one tell me if any of these scrips say where the 'Instantiate' position is, and how I can change that?

Thank you,