Orbit Script V2 Walking Problem

I have Orbit Script 2.When I walk and rotate, it walks in a different direction than what my mouse it looking at. Click This for a video.

Script:

 var target : Transform;
 var distance = 10.0;
  
 var xSpeed = 250.0;
 var ySpeed = 120.0;
  
 var yMinLimit = -20;
 var yMaxLimit = 80;
  
 var distanceMin = 3;
 var distanceMax = 15;
  
 private var x = 0.0;
 private var y = 0.0;
  
  
 @script AddComponentMenu("Camera-Control/Mouse Orbit")
  
 function Start () {
     var angles = transform.eulerAngles;
     x = angles.y;
     y = angles.x;
  
     // Make the rigid body not change rotation
        if (rigidbody)
         rigidbody.freezeRotation = true;
 }
  
 function LateUpdate () {
     if (target) {
         x += Input.GetAxis("Mouse X") * xSpeed * distance* 0.02;
         y -= Input.GetAxis("Mouse Y") * ySpeed * 0.02;
  
          y = ClampAngle(y, yMinLimit, yMaxLimit);
  
         var rotation = Quaternion.Euler(y, x, 0);
  
         distance = Mathf.Clamp(distance - Input.GetAxis("Mouse ScrollWheel")*5, distanceMin, distanceMax);
  
         var hit : RaycastHit;
         if (Physics.Linecast (target.position, transform.position, hit)) {
                 distance -=  hit.distance;
         }
  
         var position = rotation * Vector3(0.0, 0.0, -distance) + target.position;
  
         transform.rotation = rotation;
         transform.position = position;
  
     }
  
 }
  
  
 static function ClampAngle (angle : float, min : float, max : float) {
     if (angle < -360)
         angle += 360;
     if (angle > 360)
         angle -= 360;
     return Mathf.Clamp (angle, min, max);
 }

If you cant view the video, When I hold W and turn instead of walking where i look with mouse, it goes in a different direction.