Right, I have a simple movement script. I haven't picked up unity in a while and for some reason it seems i have forgotten some of the basics. I want my character to face the direction he is moving. Here is the script i have for movement at the moment.

var speed : float = 6.0;

var jumpSpeed : float = 8.0;

var gravity : float = 20.0;

private var moveDirection : Vector3 = Vector3.zero;

function Update() {
    var controller : CharacterController = GetComponent(CharacterController);

    if (controller.isGrounded) {
        // We are grounded, so recalculate
        // move direction directly from axes
        moveDirection = Vector3(Input.GetAxis("Horizontal"), 0,
                                Input.GetAxis("Vertical"));
        moveDirection = transform.TransformDirection(moveDirection);
        moveDirection *= speed;

        if (Input.GetButton ("Jump")) {
            moveDirection.y = jumpSpeed;
        }
    }

    // Apply gravity
    moveDirection.y -= gravity * Time.deltaTime;

    // Move the controller
    controller.Move(moveDirection * Time.deltaTime);
}