I have solved my problem using a different method, which works just fine. Ill provide the code if anyones intrested, though it is messy
//Create box function
Function drawbox()
//get if mouse is clicked
if mouseclick()=1
MOSX = Get Pick Vector X()+camera position x()
MOSY = Get Pick Vector y()+camera position y()
MOSZ = Get Pick Vector z()+camera position z()
//find free object number
NEWOBJ#=FindFreeObjectADV()
make object box NEWOBJ#,2,2,2
position object NEWOBJ#,MOSX,MOSY,MOSZ
texture object NEWOBJ#,1
//set variable values for while loop
scaler=1
scalx=100
scaly=100
while scaler=1
sync
text 50,50,"x:"+STR$(scalx)
text 50,100,"y:"+STR$(scaly)
//add scale values for x
scalx=scalx+MOUSEMOVEX()
//add scale vlaue for y
scaly=scaly+MOUSEMOVEY()
//make sure values dont go negative or too big
if scalx<20
scalx=20
endif
if scaly<20
scaly=20
endif
if scalx>200
scalx=200
endif
if scaly>200
scaly=200
endif
//scale object according to mosue movemts
scale object NEWOBJ#,scalx,scaly,100
if MOUSECLICK()=0
scaler=0
endif
endwhile
endif
endfunction
EDIT: Unrelated question here but didnt want to make a new thread. Is there anyway to update a objects scale information as xeno physics seems to be reading the original size and my phyics are messed up. Ive got this code to try fix it
if file exist("temp/object.dbo")=1
delete file "temp/object.dbo"
endif
save object "temp/object.dbo",NEWOBJ#
delete object NEWOBJ#
load object "temp/object.dbo",NEWOBJ#
position object NEWOBJ#,OPOSX,OPOSY,0
xeno make rigid body dynamic box NEWOBJ#
but for some reason i still get the standard cube, im guessing this is also down to not updating the scale info when saving the file

I can count to banana...