Though this may look-like or seem-like something specific, if you use GNU Emacs for Windows long enough you'll discover other problems arising from unixoid development and operational environment of Emacs.
So if you'd rather fix the problem systemically rather than piecemeal as you encounter problems you might want to consider installing Cygwin then using the package cygwin-mount to point to the repository of unixoid apps/programs/filters which emacs had available to it during it's formative years and pretty much retains to date.
Here's a snippet from my package list:
cygwin-mount 20131111.2146 installed Teach EMACS about cygwin styles and mount points
Another incidental advantage of having cygwin installed is that you can run emacs under cygwin if/when you want or need to use emacs in a Unix-like environment, for example with BASH running as a shell in a buffer.
If you DO opt to install Cygwin I recommend that you follow Steve Yagi(sp)'s advice and NOT install it in c:/cygwin, but rather directly in c:/ so the executables will end up in c:/bin/
I've encountered the same problems you have with decompression.
I've often just launched GNU emacs for cygwin from cygwin's terminal then effortlessly converted those compressed files, exited cygwin, then accessed the decompressed files via GNU emacs for Windows.