Unfortunately, I'm having the same exact problem with CGI programs on both my laptop and my computer. I've added the -T to the registry like everyone says, but I still get the error message. Yes, I restarted my computer (and by extension, the service) after the changes were made.
I'm running Win98 with PWS on both machines, so if anyone has any suggestions, I'm all for it. As a side note, running the program from the command line with the -T works just fine. For now, I'm making do without by incrementally uploading my programs to my webhost so I can test via CGI with taint turned on, but it's a huge pain.
Update: Due to several complaints, removed signature
Sarah