I was not clear. Both RAR / 7ZIP do "open" the archive, but they report a broken file inside, and then do not extract it.

Now I can extract the .txt file inside, but it looks like a binary and not a txt file. Not a unix-dos issue. *nix text files are handled fine with textpad (or others) in Windows.

Can't zip a file under Linux?!

In any case, I don't want to waste your time on this. If it's my issue here on the win boxes, I'll sort it out later.