I have the same problem on an '03 EB, 2wd.
I have already changed the switches on steering wheel with OEM Motorcraft parts after I did the self diagnostic test, and did not get the 'one flash' of the cruise control lamp on dash after the 'set' button. I did the the test 3 times with same result. I did get the one flash on all other buttons pressed. Thoughty is was the switches. Nope.
After that did not work, I replaced the disconnect switch by the brake pedal, with OEM Ford part. No go.
Yesterday I removed the CC servo to inspect the gears. The plastic (why plastic? lol) gears are intact, no teeth missing, and everything looks/spins just fine manually.
Honestly, I do not know how to test the motor in the servo. I guess I can hook up a 12v power source and see if all is 'connected'. I heard about a test in situ that puts the servo through the range test for lack of better description but can't find the instructions.
Last note, the CC cable is secure and intact to throttle body. And again, light illuminates on dash when pressing SET to set the CC, but speed does not hold. Fuses look good, me thinks maybe faulty cc servo, but would like to find the test for it. Only two bolts to take out and remove the cable, took all of 10 minutes.
Please let me know if I am overlooking anything.