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If you are DISPLAYING the variable, use pounds:
<cfoutput>
Hi #name#
</cfoutput>
If you are working the variable, don't:
<cfset shortName = left(name,6)>
If you are using the variable in a string, you must use pounds:
<cfset fullname = "#firstname# #lastname#">
Of course, you could also write the above as:
<cfset fullname = firstname & " " & lastname>