In my testing I had the config text point to the storage card for cabs, but even though the autorun exe showed it loading, the cabs progress bar flashed across to fast and it never installed.
I believe it was because I had the cabs placed 2 folders in on my storage card.
I don't think the autorun was made to look that far in, even though the config text listed it.
Also, after more experimenting to get everything to run off card in a hard reset , with nothing in Extrom2.... I killed my mem card!
So although you can have cabs run off the card, I'm not shure if you can do that more than 1 folder in.... And you do still need to run the "autorun exe" and the config text in the Extrom area, for now.
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