hi carl
welldone re the rewrite of the question
you seem to be on a windows server so I am not sure how the CHMOD works when granting permissions- i think that they use the cgi file as execute= default but I am not sure.
have you contacted the hosting company? the cgi file might be faulty- unlikely
have you tried to rename the file to something different- this is common as formmail is often hacked- by renaming it you get a little bit of protection
BTW the cgi file should not be accessible via a browser otherwise you will be hacked 24hr a day
edit______________
what is the nature of the problem with sending messages from your site?
I see that you havent hyperlinked the contact form yet