It seems that SAS dosen't have any good function to deal with binary variables( or nominal or ordinal variables). Statistical models in SAS CLUSTER Proc can only deal with continual variables. If you want a reasonable result, you'd better transform your nomial data to continual data.
to oloolo:
1.Proc distance indeed can deal with categrical or ordianl data, but actually it just transforms them into contunial variables before calculating distance using some very routine methods. If we want a good cluster result, we need do transformation by ourselves.
2.Now there are some papers about how to do cluster when data has categorical or ordinal variables. they are called cluster aggregation. But I haven't find something like this in SAS.