jaylach wrote:
LOL! I swear that you come up with the oddest issues... just teasing.

Jay, Allyson's avatar has always reminded me of a geek sitting in the corner just watching and listening, waiting to pounce with a curve ball!
@Allyson, i say that with the utmost of respect
I don't know about later builds of Windows but i'm running Window 7 and have VLC installed, within the VLC "File extensions association" setting there are options to enable or disable .zip and .rar extensions where VLC will override Windows and try to open them... quite why VLC thinks it should have control over compressed files i have no idea but it's probably a legacy thing VLC should have removed a long time ago.
VLC aren't the only culprate of this, for example, Winamp and to an extent Windows Media Player used to do the same thing, they caused me all sorts of issues before i realised that selecting "Select All" during installation/setup of these media players was not a good idea.
Step 3 of Jay's suggestion should work without the need to uninstall and reinstall VLC but if after a reboot it doesn't, then go into the VLC settings that Steve pointed you at and deselect .zip from the list (remember to save the setting before exiting the VLC options menu) and try Jay's Step 3 suggestion again.
The Windows 7 default is to open zip files with Windows Explorer.
Hope that helps.