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I set the variable in the start function and then it says that it doesn’t know it in the update function?

#pragma strict
//dwn = 0, right = 1, up = 2, left = 3.
var Facing : int;

function Start () {
	var anim = GetComponent("Animator");
}

function Update () {
	if(Input.GetAxisRaw("Vertical") > 0){
		anim.SetBool("Walking", true);
	}
}

You have declared the anim var at a local level in Start, so it only exists inside the Start() function. Declare it at the top where you decalare your Facing var, then set it in Start().