Jay,

I have installed this type of cruise on many different cars for many years. 
 I have never seen this problem.

I infer from your description that when you depress the clutch the cruise 
does not disengage as indicated by the LED on the control.  If you are 
using the coil wire to sense vehicle speed, all I can think of is a 
defective unit.  If you are using magnets and a coil on a drive shaft to 
sense speed, then possibly you coil wire is not connected properly.

Mike

Michael A. Radtke  -  Z74               Voice: 602-862-4897
Bull                                      FAX:         4853
13430 N. Black Canyon Hwy.
Phoenix, AZ  85029                      Email: m.radtke@bull.com