INSTRUCTOR WITH STUDENT ON IFR FLT PLAN. CTLR INDICATES CAN CANCEL WHEN ARPT IN SIGHT. THEY DO CANCEL; BUT CTL ZONE IS IFR.

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MY STUDENT AND I WERE ON AN IFR FLT PLAN FROM NEW ORLEANS LAKEFRONT TO CRESTVIEW/BOB SIKES ARPT; FL. WE WERE WITHIN 15 MI (W) OF CRESTVIEW WHEN THE PENSACOLA APCH CTLR BEGAN GIVING US VECTORS FOR THE LOC 17 APCH TO CEW. DUE TO THE VECTORS WE WERE TURNED INTO A LINE OF RAIN SHOWERS. THE SHOWERS WERE ALIGNED IN A VERY STRAIGHT AND DEFINED E/W LINE. WE ENTERED IMC CONDITIONS APPROX 6-8 MI NW OF CEW. APCH CTL ASKED US TO RPT WHEN WE HAD CEW IN SIGHT; BUT GAVE NO INFO (TO THE BEST OF MY; OR MY STUDENT'S RECOLLECTION) AS TO THE ARPT CONDITIONS AT CEW. ANOTHER SHORT PERIOD OF TIME WE WERE ESTABLISHED ON THE LOC AT 2000 FT AND BEGAN OUR DSCNT. WE BROKE BACK OUT OF THE RAIN SHOWERS APPROX 5-6 MI N OF THE ARPT. WE RPTED THE ARPT IN SIGHT TO ATC. THE CTLR ADVISED US THAT WE COULD CANCEL IFR AT THAT TIME; OR ON THE GND WITH CEW FSS. I TOLD APCH CTL THAT WE HAD GOOD VFR AND WOULD CANCEL AT THAT TIME. THE CONDITIONS S OF THE LINE OF RAIN SHOWERS WERE NOTHING BUT VFR. WE MADE A TFC RPT TO CEW TFC THAT WE WERE ON APPROX 3 MI FINAL. CEW RADIO RESPONDED BY SAYING WE SHOULD CALL AFTER LNDG TO CANCEL SVFR CLRNC. WE HAD NO IDEA THEIR CTL ZONE WAS IFR; BUT WE CONFIRMED THIS BY NOTING THE ROTATING BEACON WAS ON AFTER CLRING THE RWY. WE CALLED CEW RADIO AFTER LNDG AS WE WERE INSTRUCTED. NOTHING MORE WAS SAID. MY STUDENT AND I THEN WENT TO THE FSS STATION TO QUESTION THE SPECIALIST ABOUT THE MIX UP. ON OUR WAY ACROSS THE RAMP WE NOTICED THAT THE ROTATING BEACON HAD BEEN SHUT OFF SOMETIME WHILE WE WERE PARKING THE ACFT. THE ARPT CONDITIONS DEFINITELY WERE VFR; ALTHOUGH YOU COULD STILL SEE THE LINE OF SHOWERS TO THE N. WE EXPLAINED TO THE SPECIALIST THAT THE APCH CTLR HAD NOT INFORMED US OF THE CONDITIONS AT CEW AND WE ASSUMED THE CTL ZONE TO BE VFR. HAD WE KNOWN OTHERWISE WE WOULD NOT HAVE CANCELLED IFR WHILE IN THE AIR IN THE CTL ZONE. THE FSS DID NOT INDICATE THAT ANY ACTION WAS GOING TO BE TAKEN; BUT THAT SHE WAS GOING TO QUERY PENSACOLA APCH ABOUT THE LACK OF INFO GIVEN TO US IN THE AIR. I AM SUBMITTING THIS RPT TO LET SOMEONE KNOW THAT MY STUDENT AND I ARE CONCERNED ABOUT WHAT HAPPENED THAT DAY. I MAKE MY LIVING FLYING AIRPLANES AND I WANT TO BE UP FRONT ABOUT THIS SITUATION. I THINK THAT THE BOTTOM LINE OF MY RPT IS THAT THE LACK OF ARPT INFO GIVEN BY ATC COULD HAVE CAUSED A PROBLEM FOR US IF CONDITIONS WERE DIFFERENT OR IF THE FSS HAD NOT BEEN FRIENDLY.