Tried creating a cab file using the task for a folder path with a space in it. The task failed. Looking at source code, looks like a defect to me
cabProcess.StartInfo.Arguments = string.Format(CultureInfo.CurrentCulture, @"{0} N ""{1}"" {2}", options, this.CabFile.GetMetadata("FullPath"), files);
cabProcess.StartInfo.Arguments = string.Format(CultureInfo.CurrentCulture, @"{0} N ""{1}"" {2}", options, this.CabFile.GetMetadata("FullPath"), files);