I've known all sorts of problems occur from compressing your drive. If I were you I would take compression off by going to "My Computer", right click on C: and choose Properties. Untick "Compress drive to save disk space" and click OK.
The reason you are getting blue colours is due to the setting in "My Computer", Tools, Folder Options, View, Show encrypted or compressed NTFS files in color.
I've come across the SKU011.CAB lots of times but have always used the installation CD to fix it. Try this: -
A required installation file SKU011.CAB could not be found. | Kazmarek Technology Blog
With regards to the sounds it could be that the program can't access the sound file if it's compressed and has used an alternative.
I'd recommend running Disk Cleanup without the compressed option to clear up your drive. Go to "My Computer", Right click on C: and choose Properties then "Disk Cleanup".
Another way is to double click on C:, press Ctrl+F and search for files greater than 10MB. If you don't need the file and you know what it is, delete it.
Finally if you're still low on space, grab a new hard drive that has more space.