I read through the tutorial on the cherrypy website, and I'm still having some trouble understanding how it can be implemented in a modular, scalable way.
Could someone show me an example of how to have cherrypy receive a simple http post to its root, process the variable in some way, and respond dynamically using that data in the response?
Are you asking for an example like this?
http://www.cherrypy.org/wiki/CherryPyTutorial#ReceivingdatafromHTMLforms
It receives input from forms.
You can return any text you want from a CherryPy method function, so dynamic text based on the input is really trivial.