No it's not. cp.cgi is supposed to be 755. Only the vars_ files are 777. You need to review the instructions again. Your machine is correctly NOT letting you execute a world writable file.
Donate to UBBDev today to help aid in Operational, Server and Script Maintenance, and Development costs.
Please also see our parent organization VNC Web Services if you're in the need of a new UBB.threads Install or Upgrade, Site/Server Migrations, or Security and Coding Services.