Problem Installing CAB File

Hello to all,

I have a problem that has been puzzling me for quite some time now.
It seems I am not able to install a .cab file to the storage card!

I am using VS2005 to create a CAB project.
At the left you have a View that shows the files to be installed. The root dir is named 'File System on Target Device', which I do not know if this is the cause of my troubles.

Upon installation, the installer asks where to place the application, I choose 'Storage Card' but alas, it is installed on the device.

Does anyone know what possibly might be wrong?
If anyone has a test CAB project that can do the trick can he describe the steps involved?

Thank you very much!