Don't know if you are using an RB45 controller, but I've just had a similar issue. Tried everything, but could only get the steering to work with the wheels up (this is similar to the brakes and should be deactivated when retracted). Ended up reversing the servo plug to the retract in the controller, effectively reversing the operation of the retract in a given position, but then it gave me the steering when deployed.
Not sure if that is the same issue you are having, but after reversing the lead I went through the programming again and it solved it for me.
Simon