Apache 2.2 isn't obeying file level cgi permissions

Apache 2.2 isn't obeying file level cgi permissions

I have two serveers. Server 1 runs Apache 2.2 and mod_perl 2.0.4. Server 2
runs Apache 2.0 and mod_perl 1.99. They have nearly identical conf files.
The perl section of the vhost looks like this:
<Location/perl>
SetHandler perl-script
PerlResponseHandler ModPerl::Registry
Options +ExecCGI
</Location>
If I put a cgi script in the designated perl directory of Server 2
chmodded to 644, I can't access the file through the web browser. I get
Forbidden as the error. That's the behavior I'd expect. I have to chmod it
to 755 first.
However, if I put the save script in the directory for cgi scripts on
Server 1 chmodded to 644 the server just executes the script. It doesn't
seem to care what the file's permissions are only what the directory is
set to.
All files are owned and grouped in root and apache is running under a
separate user. The directory is chmodded 755 and also belongs to root.
My question is, is there a way to make the behavior identical and is this
a potential security risk on Server 1? Or is there a generally better way
I should be doing this?