Compression bug at Desktop level with Archive Utility

Can anyone else please confirm the following behaviour? If I take a file at desktop level and right click, compress... a Finder Window opens every time.

I have checked the preferences and this should not happen!
I have even trashed the preferences file and rebooted and still this behaviour persists.

I have also created a new folder on the desktop, and another inside of that. Compressing this folder creates the archive but does not launch a finder window!

Next thing I tried was to go back into preferences and set it to compress files into this untitled folder. I then created a folder called Dummy on the desktop and tried to compress it... it ended up on the desktop and launched the fider window and NOT in the Untitle Folder as directed!

A Real Mess...

Anyone else?