When I browsed to pwd.php I got this:
This is the same as phpinfo has for the Document Root.This is where my web page files are located.
NOw, cgi-bin is on the same directory level as htdocs is. In other words, when I ftp in, I see both the htdocs directory and the cgi-bin directory and can open either one. Maybe this will help you understand the directory structure.
With /usr/local/etc/httpd/htdocs in $SET_DOCUMENT_ROOT and I submit the form it trys to open the file in my web editor in Firefox and says Page Cannot Be Displayed in IE6. I've tried several variations, but nothing works. I either get this error or Cannot chdir to "/usr/local/whatever" to run filter "encode".
Any other ideas?