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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