If using apache, make sure you have "ExecCGI" directive for the "folder other than the cgi-bin folder". Or you could just have "AllowOveride" and drop an .htaccess file into that "folder" with "ExecCGI" enabled.
If you're using suexec, make sure that the "other folder" has the correct permissions.
Post what's currently in your httpd.conf file (if you're using apache) for more information.
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