the "var" scope and the "this" scope are equal, and both mean "local to the function/method". Correct?
No. 'var' means local to the function invocation, 'this' means *PUBLIC* to the instance.
is the Variables scope "private" for the entire CFC? But not accessible from the calling template?
Sort of. Strictly speaking 'variables' is "non-public" for the instance - it is accessible in components that extend your cfc (so it is more like 'protected' in Java).
Note that both 'variables' and 'this' exist for the entire lifetime of the CFC instance. 'var' exists only for the function invocation (and is created afresh for each new function invocation).
Regards, Sean
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