My 2006 XK8 convertible top hook will not retract.
The top works fine, going up and down as it should. But in the down position the hook remains up and will not be pushed down. The dash warning light is on saying the hood is not latched.

Do I have a hydraulic problem or an electrical switch (sensor) problem?

 

The top down switch is not engaging telling the system that the top is down/close the latch. The top down switch is located on the bottom of the right hand side top cylinder. You can remove the side panel and speaker for access. It has either failed or is not engaging. For everything you ever wanted to know follow the link to Gus's write up.

JagRepair.com - Jaguar Repair Information Resource

 

i just had this problem with my XK8 2006. Last fall we had all hydraulics hoses replaced with new ram from Top Hydraulics (best replacement parts available). This spring the top latch moved but doesn’t close. We checked everything, strip the car and test the Right Ram micro switch (this is normally the problem) but everything was looking good. Until I remembered that I had replace a burn back flasher bulb with a certified Canbus LED bulb.
After replacing the LED bulbs with originals - BINGO, the Top latch closed, the warning light went off and the car was back in perfect conditions.

Remember that Jaguar is a very sensitive CAT with electricity if this is not your situation check:
1- oil level
2- Right Ram microswitch

 

What an interesting reply. Thanks. I have not changed out any bulbs, but have thought about it.
When I do start switching to LED, I will do so one at a time.