Windows XP comes with built-in support for uncompressing zip'd files. If you prefer to continue using a dedicated utility like pkzip or winzip which has more functionality, you probably need to disable the limited capability of XP to prevent interactions and problems, run the following command:
regsvr32 /u %windir%\system32\zipfldr.dll
Want to re-enable the builtin zip capability, run the following command:
regsvr32 %windir%\system32\zipfldr.dll
Additionally Windows XP by default, opens EVERY compressed file to search through because it treats them as directories. This can extend the time taken for a drive-level search for up hours and sometimes hangs (the search windows) before it can complete. Another reason to disable the built in zip server - if you keep lots of zip files on your HD and you use XP search capabilities.
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