@TOPstatus:
Either ‘Extract here’ or 'Extract to “filename” folder"
By the way, this is on Windows XP Home SP2.
If I click on those options, the extraction dialog pops up and disappears for a split second… but other than that nothing happens.
are you sure it is not really specific? Try creating 1.txt on C:, then compressing it to 1.zip. Then move it to C:\test and click on extract here.
Does it work then?