It's been a while since I've had this problem, but I think you are using the wrong CAB.OVL. The one that comes with CAB only works with ASH's products.
Go to http://www.netset.com/~baldrick/ovl.html for the latest OVL and see if it helps. If not, post your config file and I'll try to figure it out. (I know I had the exact same problem once, but that was years ago.)
RE: Opening websites with CAB 