Regardless of the version installed, Windows 7 allows you to extract from common ZIP archives. If you can't do it, then there must be a problem with the module that handles the archives (but I doubt that it is the case with fresh installations). However, to overcome this issue, simply use WinRAR. It's fast and supports ZIP, RAR, RAR5, etc.
It comes with 30-day trial, but even after it expires, you can still use it in its full mode (the only thing - it displays a nag screen).
Download WinRAR: http://www.rarlab.com/download.htm
Install WinRAR, locate your archive, right click it and choose Extract to, pick a folder and it's up.