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We had the exact same thing happen on our 2003 Ford escape. We took it to the repair shop and they discovered that the throttle cable from the actual cruise control unit inside the engine compartment had become disconnected from the throttle body. They put the cruise control's throttle cable back onto the throttle body and it worked just fine. No need to replace any parts, just labor to re-attach. Not sure how it came off, but since yours appears to have done the same; perhaps its just a design flaw. Thus, the cruise control is fully operational (which is why the light on your dash comes on when you engage the cruise control), but it has lost it's ability to actually apply throttle to the engine.

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Q: 2003 Ford Escape cruise control set button doesn't work When You press the onoff button it lights up the green cruise on the dash but then when you hit the set nothing happens.?
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