Barracuda,

Your statement was correct. I spoke with Horizon twice this evening: the first time a gentlemen told me that this was not normal and asked me to try this with other receivers and call him back if I had the same problem. I tried this with all my receivers (AR6000, AR6200 and AR7000) and had the exact same things happen. When I called back, another gentleman told me that this was normal for these receivers but other higher end receivers (eg. AR9000) would allow the fail-safe mode to be set at neutral. In essence, with the above receivers the throttle cuts after one second (assuming the throttle stick was in the off position during binding) but servos hold their last position.