I have no idea how it works for a cab.  
98 Lite was one of the first pieces of software I purchased way back when.  It works beautifully for my purposes, which are NOT cab related.  
The shareware version is indeed crippled, but you'll still get a reasonable feel for it.
For XP, go to blackviper and utilize his recommendations first before giving that a try.
Howard_Casto has said it will mess around with your direct X install.  If you want to give it a try, you can always download the latest direct X and install it.  
While I've wiped a crapload of stuff off using blackviper's recommendations on my XP testing PC, I've also installed XP Lite and removed even more stuff.  Two words - daddy likey!
Your experience with a CAB may differ.  My testing is not for cab purposes, so use them for whatever you wish.  
Drop me a PM if you want more info on what I did - realizing it's not cab testing I did.