Ok, here's my results.....
The hologram:
;CoffeeGrunt Scripts
;Header
desc=Hologram entity
;Triggers
:state=0:hudreset,hudx=50,hudy=90,hudimagefine=XXXXX,hudname=holoHUD,hudhide=1,hudmake=display
:state=0:setalphafade=0,coloff
:activated=0:none
:state=0,activated=1:setalphafade=3,state=1
:state=1,alphafade=75:setalphafade=75,state=2
:state=2:sound=$0,hudshow=holoHUD,state=2
:state=3,scancodekeypressed=21:hudfadeout=holoHUD,animate=32,settargetname=Weapon,activatetarget,state=0
:state=3,scancodekeypressed=49:setalphafade=0,state=0
:activated=0:setalphafade=0,state=0
:always:rotatetoplr
;End Script
The weapon must be called Weapon, and it's Spawn At Start must be set to No.
Finally, the Terminal:
;CoffeeGrunt Scripts
;Header
desc=Terminal, activates IfUsed
;Triggers
:state=0:hudreset,hudx=50,hudy=90,hudimagefine=gamecoretextpressentertouse.tga,hudhide=1,hudmake=display,state=10
:state=0,plrdistwithin=40:hudshow=UsePrompt
:plrdistwithin=40,plrusingaction=1:alttexture,activateifused=1,hudunshow=UsePrompt,state=1
:state=1,plrdistwithin=40,plrusingaction=1:alttexture,activateifused=0,hudunshow=UsePrompt,state=0
;End Script
-=EDIT=-
Woops! I edited it to fix the mistakes. I forgot that you wanted it to rotate and be re-usable.
Anyways, now the terminal will activate and de-activate the Hologram, which will fade in and out accordingly, (I hope so at least, I'm not good at which ALPHAFADE comands do the fade-ins :-\ ). The hologram will present a HUD to the player, with the option to press Y/N for a weapon. If Y is pressed, it activates the weapon, and does a "give" animation and fades out the HUD. It will always rotate to the player and will always be at 75% transparency.