Mouse Orbit after changing Position sets camera back to last position

Hi,

I am really stuck on this code and I know I am doing something stupid. I have a camera that is is getting the mouse input and a target to use for a mouse orbit. There is another script on objects that when clicked sets a flag for moving the camera with a lerp to the object.

This all works fine except when I try and do a manual mouse orbit again because it snaps the camera back to the last position I was at during the last mouse orbit.

I have tried to offset it and a couple of other stabs at the dark but having no luck so have given up. It would be great if someone could give a hand and I do hope that all makes sense.

Edit: Also this is it running which will do a better job explaining it. http://3dsteve.co.uk/camerawebbuild/camerawebbuilt.html

 function LateUpdate () 
 {
     if(Input.GetMouseButton(0) && !selectanatomy.moving && GUIUtility.hotControl == 0) 
     {
         x +=  Input.GetAxis("Mouse X") * xSpeed * 0.02;
         y -=  Input.GetAxis("Mouse Y") * ySpeed * 0.02;
  
          y = ClampAngle(y, yMinLimit, yMaxLimit);
  
         var rotation = Quaternion.Euler(y, x, 0.0);
         var position = rotation * Vector3(0.0, 0.0, -distance) + target.transform.position;
          
         transform.rotation = rotation;
         transform.position = position;
     }
     
     if(selectanatomy.moving)    //object clicked sets this to true
     {
         transform.position = Vector3.Lerp(transform.position, targetposition.transform.position, Time.deltaTime * 5);
         
         renablecamera();
     }
 }
 
 function renablecamera()
 {
     yield WaitForSeconds (1.0);
 
     //I THINK THIS IS WHERE I NEED TO RESET THE ROTATION OF THE CAMERA TO A NEW X AND Y POSITION BASED ON WHERE THE TARGET POSITION IS 
 
     selectanatomy.moving = false;
 }
  
 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);
 }