Thank you all for your answers.

I've taken a different approach and I used Quaternions.

Here is my code which drag rotates an object with easing.

var speed : int;
var friction : float;
var lerpSpeed : float;
private var xDeg : float;
private var yDeg : float;
private var fromRotation : Quaternion;
private var toRotation : Quaternion;

function Update () {
    if(Input.GetMouseButton(0)) {
        xDeg -= Input.GetAxis("Mouse X") * speed * friction;
        yDeg += Input.GetAxis("Mouse Y") * speed * friction;
        fromRotation = transform.rotation;
        toRotation = Quaternion.Euler(yDeg,xDeg,0);
        transform.rotation = Quaternion.Lerp(fromRotation,toRotation,Time.deltaTime  * lerpSpeed);
    }
}

My only problem is that if you move the mouse very fast it bounces the object over the axis you moved it. It can be solved with using ray casting but then it will constrict the drag over the object which i don't want...

Any ideas how to prevent this bouncing?

Some quick javascript:

var cubeThing : Transform;
var lastMousePosition : Vector3;

function Update(){

    if(Input.GetMouseButton(0)){
    	if(Input.GetMouseButtonDown(0)){
    		//reset
    		lastMousePosition = Input.mousePosition;	
    	}
    	else if(Input.mousePosition.y < lastMousePosition.y){
    		cubeThing.Rotate(
              Vector3.up*(Input.mousePosition.y - lastMousePosition.y));
    	}
    	lastMousePosition = Input.mousePosition;
    }
}

Hello,

 var cubeThing : Transform; //the object that you want rotated

 function Update(){
      if(Input.GetMouseButton(0)){
           cubeThing.Rotate(Vector3.up * Input.GetAxis("Mouse Y"));
      }
 }

Also, make sure to tag your question as answered if you found a solution.

All the best,

-Lincoln Green

This is also another and not so good approach

pragma strict

var hit:RaycastHit; var obje:Transform; function Update () { var mPos=Input.mousePosition; var p : Vector3 = camera.ScreenToWorldPoint (Vector3 (mPos.x,mPos.y,1)); var a : Vector3 = camera.ScreenToWorldPoint (Vector3 (Screen.width/2, Screen.height/2, 1)); if(Input.GetButton("Fire1")) { print("fire 1 basildi"); var ray = Camera.main.ScreenPointToRay (Input.mousePosition); if (Physics.Raycast (ray,hit, 200)) { print("ray attik ve carpti"); if(hit.transform.gameObject.tag=="Player") { //hit.transform.position=a; if(Input.mousePosition.x>Screen.width/2){ hit.transform.Rotate(transform.right, -Time.deltaTime*50); } if(Input.mousePosition.xScreen.height/2){ hit.transform.Rotate(transform.up, -Time.deltaTime*50); } }
} } }

It's not clear what you exactly want but the following script rotates cube around x axis when pressing left or right arrow (or use joystick or whatever is set up for left-right movement).

var rotationSpeed = 100.0;

function Update () {
    var ydir = Input.GetAxis("Horizontal");
    transform.Rotate(ydir * rotationSpeed * Time.deltaTime, 0, 0);
}