jmccaf01,
I assure you that your code is working as you have coded it. I just think you didn't code it the way you wanted it. Try the following instead:

#!/usr/bin/perl
use strict;
use warnings;

$SIG{INT} = sub {
    print "Program interuption detected!\n";
    print "Press ENTER to continue or any other key to quit\n";
    my $foo = <STDIN>;
    chomp $foo;
    die "\nTerminating at users request\n" if $foo;
    print "Resuming our regularly scheduled programming\n";
};

print "This would be your program starting up\n";
for ( 1 .. 10 ) {
    print "$_\n" for 1 .. 10;
    sleep 1;
}
print "This would be your program finishing cleanly\n";
[download]

Cheers - L~R