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Windows error "Compressed (zipped) Folder is invalid or corrupted"

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New install of ATI2014 on HP server running WinXP Pro SP3. Performed file-level .zip backup of C:\ disk to new USB-attached external drive, which gave no indication of a problem (log attached).

Any attempt to open the .zip file gives:
"The Compressed (zipped) Folder is invalid or corrupted."

ZIP file is 37.4 GB - is that too big for Windows XP to handle?

Suggestions? More info I should provide?

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log.zip 5.46 KB
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The .zip extension is in name only. Even though the app allows for backup as a supposed .zip archive file the program in reality creates a .tib backup file. This is a known issue with the program.