If you have 3rd party zip tools installed, like WINZIP, Windows XP's built-in zip support may interfere.

To disable the built-in zip support:

1. Open a CMD prompt, or Start / Run.

2. Type:

regsvr32 /u %windir%\system32\zipfldr.dll

3. Press Enter. 4. 

You should receive a successful confirmation.

5. Shutdown and restart your computer.

NOTE: To re-register the zipfldr.dll library, use:

regsvr32 %windir%\system32\zipfldr.dll