In Top Ten: "Third-Party Utilities for Win2K" (November 2000), Michael Otey named WinZip as his top third-party utility for Windows 2000. WinZip is shareware that natively supports the Zip and compressed cabinet (CAB) formats. However, I found a program, eFront Media's PowerArchiver 2001, that's more powerful than WinZip.
PowerArchiver 2001 can compress files to .zip, .cab, .lzh, .bh, tar.gz, and tar.bz2 archives, and it supports reading and extracting .rar, .arj, .arc, .ace, .gzip, .bzip2, and .zoo archives. The product also includes complete support for XXE and UUencoding Internet-encoded files.