I offer NO FIX. This is a Microsoft area and they hold all the cards.

I do read this and you can try it. Sorry, it's from cached content so I'll just paste it without attribute.

"Sometimes the files show as folders and sometimes they dont. When he searches for files in the folder they open each file and search the contents. This seems to happen when there's specific mixed content within the folder (mp3's etc). When the folder is filled with only zip files and no sub-folders it's quicker.

Not sure if it's caused by a winzip bug or something else. Either way, removing non-zip files and sub-folders fixed the problem."