Say you have a 3d coordinate system (x,z,y) now inside this you have a Cylinder and an actor who stands on a position (x,y,z)
The following drawing (kinda) illustrates this:
As shown in the picture what I wish to calculate is the range from the actor (x,y,z) to the closest outline of the Cylinder (note outline, NOT THE CENTER).
I also want to know if the actor is inside or outside of the Cylinder .
Does anyone know how I might do this?

The distance to the cylindre is the distance to the axis (circle center) from which you deduct the radius. If negative, the actor is inside.
As you are dealing with a cylindre, you need to ignore one of the coordinates (I can't tell you which as that depends on your axis convention).