Getting UnassignedReferenceException even though reference assigned

Followed a VTC tutorial and made a simple script to throw objects. Worked fine till I messed with it. Now I keep getting UnassignedReferenceException - The variable grenadePrefab of 'sc_throw' (my script) has not been assigned. You probably need to assign the grenadePrefab variable of the sc_throw script in the inspector'

I've gone to the Inspector and dragged my grenadePrefab into the default reference area and it shows up there but I still keep getting the same error. (and I'm doing this while in scene view with game stopped, not while playing). I've also done this with and without a Rigidbody component attached to my grenadePrefab but that doesn't fix the issue.

Script is pasted below. Any suggestions as to where I messed up or how to fix?

var speedThrow = 3.0; var grenadePrefab:Transform;

function Update () { // find out if a fire button is pressed if(Input.GetButtonDown("Fire1")) {

if(CollisionsAndRaycast.GRENADE_AMMO >0) { // create the prefab via script //Instantiate prebuilt function takes 3 parameters - the prefab object; the position, and rotation of current camera/associated object var grenade = Instantiate(grenadePrefab, transform.position, Quaternion.identity);

 //add force to the prefab
 grenade.rigidbody.AddForce(transform.forward * 2000);

 CollisionsAndRaycast.GRENADE_AMMO --;
 print("You now have " + CollisionsAndRaycast.GRENADE_AMMO + " grenades.");
 }
 else
 {
 print("You have no grenades");
 }

}

}