Using incbin

You're not actually loading anything from the text file.

You need to do something like this (not tested, should work):

Incbin "names.txt"

Global names=ReadFile( "incbin::names.txt" )

local name1:String = ReadLine(names)
local name2:String = ReadLine(names)
local name3:String = ReadLine(names)

CloseFile names

Graphics 800, 600

While Not KeyHit(KEY_ESCAPE)	

   ' Clear the screen...	
	Cls
	
	' Store mouse position in these global variables...
	
	mx = MouseX ()
	my = MouseY ()
	
	DrawText name1, mx, my
	DrawText name2, mx, my + 10
	DrawText name3, mx, my + 20
	Flip
Wend
End