Normally the Steamvac will automatically switch from tool to floor when you release the handle, but it seems that the "switch" is easily broken. When you release the handle, on the RHS of the Recovery tank you should be able to see an arm that leads to the area of the tool/floor indicator. Pull that back toward the handle and it should make the switch. You will need to manually make the switch whenever you set the handle back into the upright position.
Beck, July 2007