The correct syntax for Instantiate is : Instantiate (original : Object, position : Vector3, rotation : Quaternion) : Object You have supplied arguments like (Object,Vector3,Vector3) . It should have been Quaternion.
var hitParticle : GameObject;
function OnCollisionEnter(collision : Collision) {
for (var contact : ContactPoint in collision.contacts) {
var Hit = Instantiate (hitParticle, contact.point, Quaternion.identity);
}
}