I have a 1.9AAZ in a 97 MK3 5speed. and the Cruise control won't engage.
Vince is right - that is the best test to pin point what is wrong with the cruise control system. In my case it ended up being the controller, I farted around with it trying to repair possible problems, i.e. the relay, cold solder joints stuff like that. Finally I found a rebuild site -
www.autoecu.com on e-bay of all places and sent mine away for rebuild. Excellent service and my cruise finally works, and works perfectly every time.
I had thought about buying a used one but as Vince mentioned the mk3 cruise modules are well known for there short comings and I didn't want to risk it. I highly recommend this service for the serious cruise control addict.