This error, Failed to extract the cab file in the solution , will be thrown while deploying a WSP in SharePoint , if that WSP contains any files with special characters that are not accepted by SharePoint in its file name. This applies to sand box solution as well. The only resolution would be to rename the file without any non acceptable special characters.
Kindly check any file with special characters,If there remove special characters,then deploye....
Enj...
