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I think the issue here is that you're ending up with the vector between the two tags, rather than the distance between them. The position is three values describing the difference, in coordinates, on the X, Y and Z axes respectively. You need to convert that to a single value, the distance, which is the magnitude of the vector.
Search the dreamiverse for 'vector length', which I think was built by phort, and wire your current output into its input. The output of the vector length chip should then be the distance you are looking for.