ryguydavis,
Sorry, a bit too brief on the help because I was using my phone. Try something like the images below. You just need to grab the UID of the object that has been selected (in my examples I use a mouse click) and then exclude that UID from the group of objects that you wish to consider for the pick nearest action. You can use a family (that contains the selected object type) or put the UID in a local variable to fulfill this requirement - all depending on how you have your game set up. If you choose to use a variable, just ensure you Pick all so the sub-events consider more than just the selected object. Take a look at these and let me know if they make sense or not...
[attachment=0:2rkvvu0f][/attachment:2rkvvu0f]
[attachment=1:2rkvvu0f][/attachment:2rkvvu0f]