I just use whatever is built-in on Windows 7.Which decompression program do you use on Windows 7? Windows XP doesn't give me any issues, but Windows 7 thinks that certain files are unreadable, have the wrong permissions, or have random NTFS attributes set that aren't. Creating a ZIP file with the Terminal or BetterZip avoids these problems.
Side note: I was getting these errors a LOT with Windows Vista. Hopefully Microsoft fixed the worst of the bugs in 7.
Really the only problem I have at all with compression utilities -- and all I use are the default OS tools -- is that Apache Ant's tar task doesn't create tar.gz files correctly on Mac, so I have to use the exec task to call the Mac OS tar command directly (if you don't know anything about ant you can ignore my statement).