Another way to check and see if it's your VSS is, when the cruise isn't working, check and see if your power steering still feels the same. IF the computer doesn't recieve the correct speed input, it will throw off the cruise control, the variable assist power steering, and transmission programming. Check and see if your tranny is acting funny. One of the big signs of this is the torque converter not locking up when it should.
If everythning else checks out and your cruise still doesn't work, I'd look into the disconnect swtich. The VSS is more prone to failure, but hey, you never know.