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."
Sometimes, I open a folder in the Windows Explorer and all the zip files appear in line just below the folders and I can open the zip files just like normal folders, no need to open winzip. This makes it very easy to open then directly in the Windows Explorer because I can just drag and drop files instead of opening the winzip and extracting the files. But sometimes I open it and this doesnt happen. How this works? Anybody know?