Thanks for both ideas, greatly appreciate it. They were both close but not exactly what I was hoping for, however they did inspire me to find the solution. See the capx file for it working.
neversettle.it/forums/swinging-object.capx
With that I now have two questions - how to the button release and launch to be the same button.
Second, how to make the "chain" sprite more of a rope instead of a straight line. Trying to figure out how to give the "chain" a physics like property where it would bend like a normal rope or chain connected to a flying object. I was thinking I could maybe spawn many small lines and link them together through hubs somehow so that it appears to be a bending rope/chain but not exactly sure. Any ideas?