Gathered some additional information. The zip extracts successfully under ASP.NET when the application pool using the default NETWORK SERVICE account. It does not work running the application pool under a custom account, even if that account is made a member
of the local Administrators group, but all other ASP.NET pages under the site execute properly using the custom account.
Using Process Monitor, I found that the following register queries appear when using the custom account but not when using the NETWORK SERVICE or administrator accounts that executed successfully:
NAME NOT FOUND
Is it possible that the custom account is not working because it has no Windows user profile directories?
BTW, this dev environment is running IIS 7.5 on 64-bit Windows 7