Quaternion.RotateTowards Problem

Hi all, I'm trying to beef up the following script to work for Diablo style movement:

http://wiki.unity3d.com/index.php/Click_To_Move_C

One of the problems I'm running into is in adding in smooth rotating for the character. Currently he'll instantly snap to face wherever the cursor points.

Instead of the line: myTransform.rotation = targetRotation;

I want to do myTransform.rotation = Quaternion.RotateTowards(myTransform.rotation, targetRotation, rotatespeed)

Now this works in the held down "else if" statement - if the player holds down the button it works smoothly. However if the player just clicks once (first "if" statement) it'll run through and loop back on update faster than the character can smoothly move to face his direction.

I tried hooking up this line outside of those if statements but I got weird results ... I had to define targetRotation outside of the if statements and ran into some problems with that - "conflicts with a declaration in a child block"

I've uploaded my script below. I think what I'm trying to do is pretty straightforward, I'm just lacking the skill in the syntax to implement it properly. I want the character to continue to rotate to face the destination even if the player just clicks once.

Any help is very much appreciated!

Jesse

 using UnityEngine;
 using System.Collections;
  
     public class moveOnMouseClick2 : MonoBehaviour {
     private Transform myTransform;                // this transform
     private Vector3 destinationPosition;        // The destination Point
     private float destinationDistance;            // The distance between myTransform and destinationPosition
  
     public float moveSpeed;                        // The Speed the character will move
     public float rotateSpeed;
     public float tolerance = 0f;
     
     private Quaternion targetRotation;
  
  
  
     void Start () {
         myTransform = transform;                            // sets myTransform to this GameObject.transform
         destinationPosition = myTransform.position;            // prevents myTransform reset
     }
  
     void Update () {
  
         // keep track of the distance between this gameObject and destinationPosition
         destinationDistance = Vector3.Distance(destinationPosition, myTransform.position);
                 
                 if(destinationDistance < 1f){        // To prevent shakin behavior when near destination
                     moveSpeed = 0;
                 }
                 else if(destinationDistance > 1f){            // To Reset Speed to default
                     moveSpeed = 3;
                 }
  
         // Moves the Player if the Left Mouse Button was clicked
         if (Input.GetMouseButtonDown(0)&& GUIUtility.hotControl ==0) {
  
             Plane playerPlane = new Plane(Vector3.up, myTransform.position);
             Ray ray = Camera.main.ScreenPointToRay(Input.mousePosition);
             float hitdist = 0.0f;
  
             if (playerPlane.Raycast(ray, out hitdist)) {
                 Vector3 targetPoint = ray.GetPoint(hitdist);
                 destinationPosition = ray.GetPoint(hitdist);
                 
                 Quaternion targetRotation = Quaternion.LookRotation(targetPoint - transform.position);
                 
             }
             Debug.Log ("CLICKED!");
         }
  
         // Moves the player if the mouse button is hold down
         else if (Input.GetMouseButton(0)&& GUIUtility.hotControl ==0) {
  
             Plane playerPlane = new Plane(Vector3.up, myTransform.position);
             Ray ray = Camera.main.ScreenPointToRay(Input.mousePosition);
             float hitdist = 0.0f;
  
             if (playerPlane.Raycast(ray, out hitdist)) {
                 Vector3 targetPoint = ray.GetPoint(hitdist);
                 destinationPosition = ray.GetPoint(hitdist);
             
                 Quaternion targetRotation = Quaternion.LookRotation(targetPoint - transform.position);
 
             }
         }
  
         // To prevent code from running if not needed
         
 
         myTransform.rotation = Quaternion.RotateTowards(myTransform.rotation, targetRotation, rotateSpeed * Time.deltaTime);
         
         
         if(destinationDistance > tolerance){
             myTransform.position = Vector3.MoveTowards(myTransform.position, destinationPosition, moveSpeed * Time.deltaTime);
         }
     }
 }