1: In the <Directory> block you need to add the ExecCGI option, to allow execution of scripts
2: Plus you need to add the AddHandler line, which defines which file extensions represent executable scripts
<Directory /var/www/>And then restart the server.
AddHandler cgi-script .cgi
Options ExecCGI Indexes FollowSymLinks MultiViews
allow from all
Note that you want ExecCGI and NOT +ExecCGI - not really sure why the plus option doesn't work, but it doesn't.