Have you tried it on the host and had problems or did you just find this out and now you don't know what to do?

If you haven't tried it on your host, try it. I believe what your host is saying is that if you have any php scripts that need to write to files you need to put in cgi directory, and they probably told you that you need to end files with ".php.script". If this is right then install it normally and it will work. (mine did) The only thing I can't get to work is
xoopsgallery but that is because the host doesn't have Imagemagik or netpbm installed and they won't let me put netpbm in a folder and execute the program, like I could do on my server if I needed to.

Hope that helps,

and there is a photo gallery that doesn't need those two programs to work. I think it is called myalbum-p

the field modifysubmitter is missing in the sql file.
To fix the error for modifysubmitter,
Go into the database and go to the table
xdir_mod
add the field
modifysubmitter
int
value 11
not null
value 0

Done

Or change the sql file in table

xdir_mod

add the line

`modifysubmitter` int(11) unsigned NOT NULL default '0',

right before
PRIMARY KEY ('requestid')

Then update the module
Done.

I would like to remove the ratings in the xdirectory module.
I have removed the link to "Rate This Business" but when you look at the listing it still says "Rating: 0.00 (0 votes)"
How can I remove that line? Any help would be greatly appreciated. Thanks.

You most likely have to have your hosting company create the database and they will give you info like :

database host
database username
database password
database name

Then you just fill in the blanks when you start XOOPS setup.