I don't understand cosmic muons! Do they travel close to the speed of light?
Perfectly possible. Any massive particle can be accelerated up to close to the speed of light, provided they don't exactly reach it. The total energy necessary to push it to the speed of light increases asymptotically to infinity. Think about the fable of Zeno and the turtle.
However, muons are unstable particles. Even when travelling at relativistic speeds, they'll inevitably decay. What we observe here on Earth rather tends to be secondaries created from the collision of cosmic rays with the atmosphere. Those cosmic rays tend to be "stabler" particles such as protons, electrons or gamma rays (photons).
In respect to a person on the ground how far does a muon travel before decaying if it's traveling 99.9995% the speed of light
For beta=0.999995 you get the relativistic factor gamma=1/sqrt(1-beta^2) = 316.23. Therefore, since in its frame of reference the muons' half-life is 2.2 microseconds, then half of them will survive for 2.2E-6 * 316.23 = 0.7 miliseconds, or 7E-4 seconds. In that time, travelling at (close to) the speed of light, they can cover a distance of 7E-4 * 3E8 = 2.1E5 meters, or 210 kilometers (or about 130 miles). Muons decay all the time, but on average half of them will survive long enough to transverse that distance. Then, half of the remaining muons travelling at that speed will survive another distance equal to that (another 210 kilometers), and so on.
Provided that such muon is created in the atmosphere (as a secondary from a cosmic ray collision with some atom in our atmosphere), this muon should survive long enough to reach the surface and be detected.
How is a muon's reference frame different than ours?
The frame of reference moves relative to ours. The muon doesn't move in its own frame of reference.
You can relate quantities (time, distance) measured in a frame of reference with the same quantities measured in another frame of reference by using the Lorentz transform:
http://en.wikipedia.org/wiki/Lorentz_transformation