Hmmm.
When closestPointOnMesh was released for v4, it had a bunch of good docs on how to use it. It seems those haven't made it into the Maya5 docs anywhere.
closestPointOnMesh can also be used as a command not just as a node. do a "help closestPointOnmesh" in the script editor to get a better list of flags and usage as a command.
Here is an example of how I have used it in a script to retrieve the closest face to an arbitrary input point...
int $closestFace = closestPointOnMesh -ip $vertex\_x $vertex\_y $vertex\_z -q -f $selectedObject
;
The -ip flag is where I put in the xyz location.
-q puts me in query mode
-f tells it to return a face index number
$selectedObject is the object I want the point on.
There are also flags for querying the closest point's UV value.
If you need I also have a little bit of code which takes this closest face and finds the closest actual vert, if you need it.
Hope this helps...
--JeffD