I confirmed the same situation on my PC (Windows XP, SP2, Japanese).
It is not a big problem for me because I don't use "Windows compressed folder" to avoid unacceptable overhead of the function.
As I stated at my homepage, my priority is to port future version of
info-zip which will support 2GB+ file size, AES encription, unicode file name, and more.
In the meantime, I recommend to use other zip-compatible tools for Windows (e.g. WinZip). Or you may buy
PKZIP for i5/OS (Note that I haven't tried it) as I can't guarantee the port...
uzaemon@Japan