It's referring to the scripts you have installed and the usage of system resources of those scripts. Basically, the web host doesn't want anyone hogging all of the CPU. If you still have any doubt on what the TOS means, I'd contact the host directly.
It seems it would be very easy for the host to terminate service based on this clause. All they would have to say is that you're hogging CPU and suspend or terminate your account.
Well now, a virtually all hosts have at least a vague "resources abuse" clause that allows them to suspend or terminate accounts. That doesn't make them all bad.
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They basicly want you to only have a website, alot of hosts don't really want there clients running a bunch of scripts. Slows things down. And unless you pay alot they keep you on a short leesh.
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