Jon, you had me laughing testing the jacket by throwing a mountain bike up and down the hills. If I was wearing just a base layer it would be wringing wet, never mind wearing a hard/soft shell.
In fact I've got a great jacket that is windproof at the front, and almost transparent on the back to allow you all the sweat to evaporate whilst out on the bike. Its useless for walking in as any wind cuts through the back, but on a bike it really lets the sweat evaporate... and yes, its usually soaking after I've been thrashing up and down the hills, but it dries fairly quickly.
Sounds like this jacket works as it should then?
I guess the damp around the cuffs is from the sweat condensing on the sleeve, where the body's core heat has less impact on the external cold, and running down the sleeve to gather around the cuffs? could be some capilary action dragging that sweat up the outside of the sleeve too?