When you use the Expand command, it places all the files in the same folder.

When you type Expand /?, you receive:

Microsoft (R) File Expansion Utility Version 5.1.2600.0
Copyright (C) Microsoft Corp 1990-1999. All rights reserved.

Expands one or more compressed files.

EXPAND \[-r\] Source Destination
EXPAND -r Source \[Destination\]
EXPAND -D Source.cab \[-F:Files\]
EXPAND Source.cab -F:Files Destination

-r Rename expanded files.
-D Display list of files in source.
Source Source file specification. Wildcards may be used.
-F:Files Name of files to expand from a .CAB.
Destination Destination file | path specification.
Destination may be a directory.
If Source is multiple files and -r is not specified,
Destination must be a directory.
You can use the Cabinet Tool, installed from the Support Tools folder of the CD-ROM.

When you type cabarc /?, you receive:

Microsoft (R) Cabinet Tool - Version 5.1.2600.0
Copyright (c) Microsoft Corporation. All rights reserved..

Usage: CABARC \[options\] command cabfile \[@list\] \[files\] \[dest_dir\]

Commands:
L List contents of cabinet (e.g. cabarc l test.cab)
N Create new cabinet (e.g. cabarc n test.cab *.c app.mak *.h)
X Extract file(s) from cabinet (e.g. cabarc x test.cab foo*.c)

Options:
-c Confirm files to be operated on
-o When extracting, overwrite without asking for confirmation
-m Set compression type \[LZX: -p Preserve path names (absolute paths not allowed)
-P Strip specified prefix from files when added
-r Recurse into subdirectories when adding files (see -p also)
-s Reserve space in cabinet for signing (e.g. -s 6144 reserves 6K bytes)
-i Set cabinet set ID when creating cabinets (default is 0)
-d Set diskette size (default is no limit/single CAB)

Notes
-----
When creating a cabinet, the plus sign (+) may be used as a filename
to force a folder boundary; e.g. cabarc n test.cab *.c test.h + *.bmp

When extracting files to disk, the , if provided, must end in
a backslash; e.g. cabarc x test.cab bar*.cpp *.h d:\test
The -P (strip prefix) option can be used to strip out path information
e.g. cabarc -r -p -P myproj\ a test.cab myproj\balloon\*.*
The -P option can be used multiple times to strip out multiple paths

When creating cabinet sets using -d, the cabinet name should contain
a single '*' character where the cabinet number will be inserted.