The web server is compliant with the CGI 1.1 standard. If you choose not to allow it to run scripts uncheck the box.
If the box is checked it will run a compliant script if the script has permissions.
Script Permissions
Even if you specify file execution of cgi scripts you must still control which scripts are executed or not based on this table. The default behavior is to assume the script is NOT to be executed. If you are experimenting and decide not to go into production with your own script just toggle the particular one off off by selecting it from the list and pressing the modify button.
Maximum Postdata Size
This field is of concern only when a remote user needs to post information to the web server. For example if the user wishes to post a file to the server. The server attempts to validate the available space and if the amount the user is trying to post exceeds the allowed amount or available amount the posting will fail.
This is also important in light of the fact that the web protocol is generally a public protocol meaning anyone on the internet has the possibility to post large amounts of data to the Web Server.
Allow Post File
The Web Server includes one CGI script called postfile. During installation you will have been asked if you wish for it to be installed as a script.