Hi everyone with this problem,
I've been in this problem for two months now and tried every possible
solution I could find but in no prevail.
Here's my solution: I had a 256Mb and 128Mb memorystick in my PC till I
swapped the 256Mb for a 512MB stick from PCWrld.
Since that change I have had cab installation problems and I've swapped
the 512Mb stick with the 256Mb stick and VOILA! it works!
Suggestion: try taking out any memorystick from your slots and leave at
least one 128Mb in, and see if it works with your cab file installations.
If this wouldn't work try swapping another memorystick.
I didn't only have problems with like OFFICE1.cab and DATA1.cab but also
from cab-files from adobe photoshop CS2 and Coreldraw Graphics Suite X3
and many others.
Hopefully this works for you, and good luck!
Cheers, Marcus