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 Windows XP built in unzip is not able to unzip SharpZip lib(ICSharpCode.SharpZipLib.dll ver 0.85.5.452. ) compressed files.

I've encountered the same error trying to use that library with .Net 3.5. even though other zip apps are able to unzip the file, Windows Zip isn't... it's saying "The file is blocked" or something. Try using FastZip class (CreateZip method), this worked for me.

Windows built-in cannot handle the Zip64 format, which is the default in the 0.85 version of SharpZip.

If you are using ZipOutputStream (my preference), just add this line:

zs.UseZip64 = UseZip64.Off;

before the first
zs.PutNextEntry(newEntry);

Note that files over 4GB will require Zip64 format, but otherwise this will fix it.
Regards,

David