WinRAR is a powerful tool to process RAR and ZIP files.
I install Winrar 3.80 with any problems in windows 7. Winrar works just fine with all Windows 7 Beta builds.I have unpacked files from 250K to 17 GB without any issue.
If you extracte file with issue,please make sure you don't run out of disk space or particularly in your temp folders.
Download WinRAR sofeware here: http://www.rarlab.com/download.htm