Why 404 error

[optimised]

Trying to get cgi-script to work in browser.
If I type absolute path in browser http://www.mydomain.com/cgi-bin/test.cgi
I get 404 error I'm 100% sure the directory and file exist.

path on server = home/mydomain/www/cgi-bin

#!/usr/bin/perl
#
print "Content-type: text/html\n\n";
print "Hello World\n";

I ran >perl -c test.cgi
syntax fine
Then >perl - w test.cgi
Hello World

command line works fine returns- Hello World.
/cgi-bin>#perl test.cgi

But running http://www.mydomain.com/cgi-bin/test.cgi
I keep getting internal error 505
Error_log
[error] (2) No such file or directory: exec of /home/mydomain/www/cgi-bin/test.cgi
[error] Premature end of script headers

## httpd.conf - configuration for the Apache web server
#enable cgi-scripts
AddHandler cgi-script .cgi .pl

ScriptAlias /cgi-bin/ "/home/mydomain/cgi-bin/"

<Directory "/home/mydomain/cgi-bin">
Options None
AllowOverride None
Order allow,deny
Allow from from all
</Directory>

# Virtual host mydomain
<VirtualHost x.x.x.x>
DocumentRoot /home/mydomain/www/
ServerName www.mydomain.com (http://www.mydomain.com)
ScriptAlias /cgi-bin/ "/home/mydomain/cgi-bin/"
ServerSignature email
</VirtualHost>

Do I need to add something else to httpd file?

[X_console]

Moving this to Web Serving/Security forum.