I'm a proud first time owner of a 2006 c6 z51 and I think that the traction control system is not working. If I stand on it with the traction control "on" shouldn't the engine rpms decrease and rear brakes automatically be applied as soon as the rear tires begin to slip? The "active handling" light comes on but my car will get totally loose and if I continue to give it gas the rear tires will continue spinning. I cant feel any difference when the system is on or off and it's been this way since day 1. My last car was a g35 coupe and when the traction control was activated you could definitly feel it.

I could really use some feedback on this before I push the issue with the dealer.

 

I see this post is about a month old, so I may be late in replying, but on the newer Vette's the traction control will let you get pretty loose before it comes in.
This probably is better than my 92, that has a very intrusive traction control system, that keeps you out of trouble, but you have to turn it completely off to get the back end loose at all.
If your active handling light is on the system probably is operating as designed.
Probably the best way to tell, is (in a safe spot) turn off the traction control completely & compare operation.