Answers to each specific question:
1) Yes, most well equipped repair shops should have the tools to do this
2) Autozone does not have the capability to diagnose this correctly
3)same as question 1 (yes limited abilty)
5) Computer needs input signals from other sensors, like engine temperature, road speed, engine rpm, brake off signal, E- brake off signal, abs, skid control, transmission shift position signal, these should all turn the check engine light on first to render the cruise control inop.
6) refer to 1)
7) worn pads/rotors will not stop cruise control unless the brake fluid is low which causes the brake warning light to turn on, any warning light on the dash wish stop cruise control operation
8) As the dealer to do a complete scan of all computer controlled systems including ABS/VSC and cruise control, there have to be some diagnostic codes since the light is flashing, ask fo a printout and explanation of what they find and recommend doing.