Here's some more information that should help.
From a Post by “NeverNZ” – 07/25/06
“if you allow your car to slow you down, you do 2 things, first you are not wasting energy by using your brakes, and when the engine slows you it goes into a super lean mode (usually air fuel ratios above 17:1, sometimes far higher). this does no damage your engine, so don’t worry. However, if you put the car into neutral, the engine must maintain itself so it usually goes into a 14.7:1 air fuel ratio, therefore using more fuel while idling to a stop then [than] while engine breaking.”[braking].
From a post by “psyschack” - -7/30/06
(NOTE: His posts on driving for fuel economy are VERY interesting!)
Engine off, in netural [neutral] coast uses no fuel.
Engine on, in 5th gear coast is next best on fuel useage.
Engine on, in netural [neutral] is dead last in fuel savings.
Note: [xxxx] my ‘edits.’ (Tybeedon. 09/24/06)