I've had a breakthrough, it's working perfectly now! Sven B posted the correct code in this topic: http://forum.thegamecreators.com/?m=forum_view&t=185556&b=1 The issue was that the data wasn't being scaled correctly (the formula for var_Multiplier# was incorrect, and I needed to use 1 for the PICK SCREEN distance).
Here's the final code:
PICK SCREEN MOUSEX(), MOUSEY(), 1
var_Multiplier# = (4 - CAMERA POSITION Y()) / GET PICK VECTOR Y()
var_Mouse_PositionX# = GET PICK VECTOR X() * var_Multiplier# + CAMERA POSITION X() + 5
var_Mouse_PositionZ# = GET PICK VECTOR Z() * var_Multiplier# + CAMERA POSITION Z() + con_Tile_Size + 3
The "+ 5" for the X value and "+ con_Tile_Size + 3" for the Z value were added to fix an offset issue between where everything is displayed in the world and where the mouse coordinates were.
I really, really appreciate the time you took to help me Pincho. After working on this for two days I was about ready to croak haha!