Expecting :, found '='.

Getting a weird error I some how cant get my head around!!??

var paused : boolean = false;
var graphicsMenu : boolean = false;
var graphicsLevel : int;
var cam : Transform;

function Start()
{
	defaultGuiColor = GUI.color;
	graphicsLevel = QualitySettings.GetQualityLevel();
	transform.GetComponent(MouseLook).enabled = true;
}

function resetGame()
{
	paused = false;
	Time.timeScale = 1.0;
	Application.LoadLevel(Application.loadedLevel);
}

function OnGUI()
{
	if (paused == true)
	{
		//make background slightly darker
		GUI.Box(Rect(0,0,Screen.width,Screen.height), "");
	}
		//make buttons for pause menu
		if (GUI.Button (new Rect ((Screen.width/2)-50, (Screen.height/2)-100, 100, 30), "Resume"))
		{
			cam.BroadcastMessage("pauseToggle");
			paused = !paused;
			graphicsMenu = false;
			transform.GetComponent(MouseLook).enabled = true;
			Time.timeScale = 1;
			return;
		}
		if (GUI.Button (new Rect ((Screen.width/2)-50, (Screen.height/2)-50, 100, 30), "Restart"))
		{
			resetGame();
		}
		if (GUI.Button (new Rect ((Screen.width/2)-50, (Screen.height/2), 100, 30), "Video"))
		{
			graphicsMenu = !graphicsMenu;
		}
		if (GUI.Button (new Rect ((Screen.width/2)-50, (Screen.height/2)+50, 100, 30), "Quit"))
		{
//			Application.LoadLevel(0);
		}
	}
	
	if (graphicsMenu == true)
	{
		if (graphicsLevel == 0){GUI.Label (Rect ((Screen.width/2)+100, (Screen.height/2)-35, 200, 30), "Graphics Setting: Very Low");}
		if (graphicsLevel == 1){GUI.Label (Rect ((Screen.width/2)+100, (Screen.height/2)-35, 200, 30), "Graphics Setting: Low");}
		if (graphicsLevel == 2){GUI.Label (Rect ((Screen.width/2)+100, (Screen.height/2)-35, 200, 30), "Graphics Setting: Medium");}
		if (graphicsLevel == 3){GUI.Label (Rect ((Screen.width/2)+100, (Screen.height/2)-35, 200, 30), "Graphics Setting: High");}
		if (graphicsLevel == 4){GUI.Label (Rect ((Screen.width/2)+100, (Screen.height/2)-35, 200, 30), "Graphics Setting: Ultra");}
		graphicsLevel = GUI.HorizontalSlider (Rect ((Screen.width/2)+100, (Screen.height/2)+5, 100, 30), graphicsLevel, 0, 4);
		QualitySettings.SetQualityLevel(graphicsLevel);
	}

function Update ()
{
	if (Input.GetKeyDown(KeyCode.Escape))
	{
		//tell camera to pause
		
		cam.BroadcastMessage("pauseToggle");
		graphicsMenu = false;
		{
			//disable movement and toggle pause
			
			transform.GetComponent(MouseLook).enabled = false;
			paused = true;
			return;
		}
			//allow movement and toggle pause
			
			transform.GetComponent(MouseLook).enabled = true;
			Time.timeScale = 1;
			paused = false;
			return;
		}
	}

Which line?

Replace your update function with this code:

function Update ()

{

    if (Input.GetKeyDown(KeyCode.Escape))

    {

        //tell camera to pause

        

        cam.BroadcastMessage("pauseToggle");

        graphicsMenu = false;
        if (paused == false)
        {

            //disable movement and toggle pause

            

            transform.GetComponent(MouseLook).enabled = false;

            paused = true;

            return;

        }
        else
        {
            //allow movement and toggle pause

            

            transform.GetComponent(MouseLook).enabled = true;

            Time.timeScale = 1;

            paused = false;

            return;

        }

    }
}

I am not sure if this will work perfectly, but it fixes one of your problems

Just some additions to clarify: You have added some unnecessary curly braces which are usually used for methods or e.g. if/else operations (like importsjc introduced them). That should be the buggy part.

remove curlies at line 70 and line 76.