The Windows compressed folders and files are called "zipped" - just like Winzip folders/files are called. However, if you use WinXP's compression, the folder or file will have an icon that looks like a zipper.
NOTE: Installing a different compression program to Windows will remove Compressed (zipped) Folders from the right-click menu choices and replace it with the new compression program's icon.
Folders that are compressed using the Compressed (zipped) Folders feature use less drive space and can be transferred to other computers more quickly. You can work with a compressed folder and the files or programs it contains just as you would an uncompressed folder. Once you have created a compressed folder (identified by the zipper on the folder icon), you can compress files, programs, or other folders by dragging them to it. You can open files directly from compressed folders, or you can extract files before opening them. You can run some programs directly from zipped compressed folders, without decompressing them. However, to run programs that are dependent on other files, you must first extract them.
Compressed folders can be moved to any drive or folder on your computer. You can also share zipped compressed folders with other users, even if they use a different file compression program. You can protect zipped compressed folders with a password. This protects your data if you save it in a shared network folder, attach it to an e-mail message, or move it between work and home on floppy disks.
To create a zipped compressed folder (only works if no other zip program is installed)
Open My Computer.
Double-click a drive or folder.
On the File menu, point to New, and then click Compressed (zipped) Folder.
Type a name for the new folder, and then press ENTER.
To add files to a zipped compressed folder (only works if no other zip program is installed)
Open My Computer, and then locate the compressed folder.
Drag files to the compressed folder to compress them.
Notes
NOTE: If a program requires dynamic-link library files or data files to run, those files must first be extracted.