FindNearestXY doesn't work for polygon with tolerance

[BalachandarPragasam]

FindNearestXY(x,y, radius): Does not apply the radius for polygon to search. It only finds the polygon if the x,y is within the polygon. It doesn't detect if the point is within radius from the edge of the polygon.

This works fine for lines and points. I have tried the FindNearestXY(x,y,radius, extent) as well.

Could some one please find an answer to this?

ArcPAD 10

[MatthewProkuda]

Did you manage to get this working?  Actually, I'm more interested in your code to get the nearest feature from a point layer to my current location.  Are you able to provide a code sample?