Lets start from scratch:
1. Remove the cable from the bike and put it aside.
Note: if step 1 is ignored then the rest will not work.
2. Remove your housing and any ferules for the ends of the housing.
3. shift your shift levers so that if the cable was hooked up the derailleur would shift the chain to the smallest cog in the back.
Note: This step is vital...so make sure to double check the small lever behind the brake lever will not shift anymore.
4. Thread the cable into the sti shifter. Visually make sure the button on the end of the cable is seated in the little round slot in the shifter mechanism.
5. slide the piece of housing the extends between the lever and the frame stop onto the cable. Be sure to install any ferules onto the ends of the housing if they are needed.
Note: if you cut the housing you may have cut a preinstalled ferule off with the chunck of housing you cut away. You may need to replace that preinstalled ferule with one that slides over the end of the housing.
6. Route the cable as appropriate for your frame. Usually this means the cable will run along the underside of the downtube and through a plastic guide under the bottom bracket shell.
note: install any other housing bits and ferules as appropriate. On most bikes the only other housing for a derailleur cable will extend between a cable stop on the right chainstay and the adjusting barrel on the rear derailleur. You will normally need a ferrule on each end of this piece of housing.
7. Run the cable through the deraileur's adjusting barrel.
8. recheck the ends of the housing to make sure they are seated in their respective stops.
9. Pull the cable tight and secure it to the derailleur with the cable fixing bolt.
10. Check that the shift lever functions correctly by turning the pedals and pivoting the brake lever to shift through the larger cogs.
11. email me for my phone number if you continue to have problems. (jffgreenfield<at>gmail<dot>com)
-j