So I've been playing around with this for about the last hour and it doesn't seem like you can change cell contents from within a formula.
Personally, I don't understand what you're trying to do with that sample code. Why in the world would you take the user's selected range, and then resize it to only 5 cells?
I wrote the following function within a new module in a new excel workbook.
Function FillIn()
Range("A1").Value = 1
FillIn = 1
End Function
This function works perfectly if I call it from a button click, but doesn't work if I type "=FillIn()" within a cell.
I have no idea why, but it seems that if you use a function as a formula, something within the cell that is calling it disallows changing any of the other cells. You can get other cell's values, but if you try to change them, it throws an error.
I think you'll have to figure out another way to do what you're wanting.