The intersection of the two lines is not $(13,4)$. Plugging that point into the first line gives $8$ and into the second gives $4$ for the left hand side, not $0$, so you need to redo the solution for the point. The $x$ coordinate is correct, but not $y$. Then there are many lines through that point and you are to use the distance information to pick two of them. If the intersection point is $(a,b)$, the point slope formula would be $y-b=m(x-a)$ and you need to use your formula for the distance between $(1,4)$ and this line to pick $m$.
Added: I meant the line through $(13,8)$ of slope $m$, so $y-8=m(x-13)$ or $-mx+y+13m-8=0$. You need the distance from $(1,4)$ to this line to be $4$. Mathworld gives the distance from the point $(x_0,y_0)$ to the line $ax+by+c=0$ as $\frac{|ax_0+by_0+c|}{\sqrt{a^2+b^2}}$ so you have $4=\frac{|-m+4+13m-8|}{\sqrt{m^2+1}}$. Moving the $\sqrt{m^2+1}$ to the other side and squaring, you should find two values for $m$.
You can use a formula, although I think it's not too difficult to just go through the steps. I would draw a picture first:
You are given that $\vec{p} = (1,0,1)$ and you already found $\vec{m} = (1, -2, 4)$ and $\vec{l}_0 = (1,2,-1)$. Now it's a matter of writing an expression for $\vec{l}(t) - \vec{p}_0$:
\begin{align}
\vec{l}(t) - \vec{p}_0 =&\ (\ (t + 1) - 1\ ,\ (-2t + 2) - 0\ ,\ (4t - 1) - 1\ )\\
=&\ (\ t\ ,\ -2t + 2\ ,\ 4t - 2\ )
\end{align}
Now you dot this with the original slope of the line (recall that $\vec{l}(t) - \vec{p}_0$ is the slope of the line segment connecting the point and the line). When this dot product equals zero, you have found $t_0$ and thus $\vec{x}_0$:
\begin{align}
\vec{m} \circ (\vec{l}(t) - \vec{p}_0) =&\ (1,-2,4)\circ(\ t\ ,\ -2t + 2\ ,\ 4t - 2\ ) \\
=&\ t + 4t - 4 + 16t - 8 \\
=&\ 21t - 12
\end{align}
Setting this to $0$ gives that $21t_0 - 12 = 0 \rightarrow t_0 = \frac{4}{7}$. This gives the point $\vec{x}_0$ as:
\begin{align}
\vec{x}_0 =&\ \vec{l}(t_0) = (\ \frac{4}{7} + 1\ ,\ -\frac{8}{7} + 2\ ,\ \frac{16}{7} - 1\ ) \\
=&\ \frac{1}{7}(11, 6, 9)
\end{align}
So finally the distance would be the distance from $\vec{p}_0$ to $\vec{x}_0$:
\begin{align}
d =&\ \sqrt{\left(\frac{11}{7} - 1\right)^2 + \left(\frac{6}{7} - 0\right)^2 + \left(\frac{9}{7} - 1\right)^2}\\
=&\ \sqrt{\left(\frac{4}{7}\right)^2 + \left(\frac{6}{7}\right)^2 + \left(\frac{2}{7}\right)^2} \\
=&\ \frac{1}{7}\sqrt{4^2 + 6^2 + 2^2}\\
=&\ \frac{1}{7}\sqrt{56} \\
=&\ \frac{2}{7}\sqrt{14}
\end{align}
...or perhaps $\sqrt{\frac{8}{7}}$ is more appealing.
Extra Info
There's no need to worry about whether or not my 2D picture is really representative--it is. No matter how high the dimensions of the problem, the problem itself can always be mapped to exactly 2 dimensions unless the point is on the line--then it's a 1 dimensional problem--which of course we can represent in 2 dimensions just as we can represent this 2 dimensional problem in much higher ones.
Best Answer
For a parametric equation of a line $(x,y,z) = (x_0, y_0, z_0) + (a,b,c)s$, the line itself is the set of all points $P(x,y,z)$ such that $x = x_0 + as$, $y = y_0 + bs$, and $z = z_0 + cs$. When $s = 1$, this gives you one point $A$; when $s = 2$, this gives you another point $B$; and when you take all values of $s \in \mathbb{R}$, you get the entire line.
Notice that if instead you had $(x,y,z) = (x_0, y_0, z_0) + (a,b,c)s/2$, you'd still have the same line, except this time, $s$ has to be $2$ to give you point $A$, $s = 4$ gives you point $B$, etc. So when you're trying to find the value of $s$ for any one point, you can just choose any $s$ that you want!
So if $(2,1,1) = (a,b,c)s$, choose any $s$ you want and solve it for $a$, $b$, and $c$.
(By the way, there are two points on the line $(1,2,0) + (2,-1,2)t$ that are $3$ units away from $(1,2,0)$. You found one when you set $t = 1$; what if you set $t = -1$?)