the moving type formulae are pretty good. I get an error of less than .03% on distance calculations, bearings are accurate enough for my purposes
the formulae handle curvature of the earth, mind you you could generate the equivalent of a lookup table (eg at lat of 20 one minute of long = x, at 30..... and so on).. that would give you your range. The potetnial problem is that your SQL will return a square rather than a range circle.. so the risk is that you will inlcude some targets which are in the corners and further away than the targets on the theoretical range circle.
If I were you I'd store the true geodetic position as latitude and longitude, as decimal degrees
I'd do a calculation which gave your range and then query the db for positions within that range.
if you want closest (geographical) position then subtract the target position for the actual position (the one you are comapring to) and order by the ABS of the difference. that should give you a closest to list/ Id then generate a true distance in your front end (and possibly reorder in the front end). you could do the calculation in SQL.. although it would be a pig to debug
the alternative to calculate the true distance between points means writing a function. theoretically you could do the calculation in SQL.. although it would be a pig to debug. if geographical precision is important then you will have to write a function or inline SQL.
.. in reality you only need to do the range calculation for the longitude as this does vary with position on the globe. mind you I think you could do an approximation, seeing as 1 degree of latitude = 60nm, which is approximately 1.1 statutory miles. at 50 degrees latitude 1 degree of longtitude is approximately 60% of 1 degree of longitude at the equator
depending on how big your search area is the curvature of the earth may not be too significant.. it will be more of a problems as your position nears the poles
Although I'd never heard of UTM 'till you mentioned it, my impression is that its an old style approximation. predating the advent of computers.. I think you will get close enough with a simple SQL query. It depends on how accurate your results 'MUST' be. I suspect the U part of the UTM may not actaully be 'UNIVERSAL' in use.
other usefull references include (well ones that have been usefull to me.
http://williams.best.vwh.net/avform.htm#Crs
http://www.geomidpoint.com/destination/calculation.html
http://cuinl.tripod.com/Tips/math9.htm
http://www.colorado.edu/geography/gc.../distance.html