Ok, so I got the env_projectedtexture parented to the portal gun and it works just dandy, expect the flashlight won't move on the Z plane (vertical). Example- flashlight moves side to side with the player movement but not up or down if you look up or down. Ideas?

Maybe you could use a different attachment? Look in the model-viewer and see if there is any other attachment to the portalgun. It could also be that the portal gun does not pitch up and down so it'll probably be better to parent it to your player's hand.