Blue circle can be creating with texture(You must do alfa channel to texture). First created texture and used plane , then i used unlit Transparent shader.(You can use what you want.But shader must support to alfa channel.)![alt text][1]
[1]: http://img862.imageshack.us/img862/741/effecto.png
And you can use Spehere Collider to check to range or other way check to Distance (Vector3.Distance)
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