Tutorial using CI 8.0.0

[BAMsE]

Wait... you prepared cab with such commandline

arc a -ep1 -ed -r -w.\ Data\Data1.cab -mprecomp:v+srep+lzma:a1:mfbt4:d256m:fb128:mc1000:lc8 "PATH TO BE COMPRESSED"

and use

[InstallOptions]
PrecompVer=0.42

in setup.ini? It can't work! It's for old method data.arc ---> data.pcf ---> data.srep ---> data.cab
For one-step commandline compression you should use

[InstallOptions]
PrecompVer=inside

Any errors are result of absence/incorrect versions of files.

Here is a package containing all necessary files.
1. extract it anywhere
2. drag'n'drop the folder which content you want to compress to #compress.bat (use some small for testing)
3. put in your setup.ini

[InstallOptions]
PrecompVer=inside

4. don't use "PrecSrep:1" under [ExtractSettings]
5. pack arc.ini from this package to the root of your setup.cab