If your input.TextureCoordinate really represents texture coordinates for sampler, than the way you trying to calculate distance is wrong.
You can change body of your PixelShaderFunction as follows:
float distance = distance(cameraPos, input.Position3D);
float l = saturate((distance-fogNear)/(fogFar-fogNear));
return lerp(tex2D(Sampler, input.TextureCoordinate), fogColor, l);
Add the following to your VertexShaderOutput declaration:
float4 Position3D : TEXCOORD1;
In your Vertex Shader populate Position3D with the position of the vertex multiplied on world matrix:
output.Position3D = mul(input.pos, matWorld);