To have archives appear as folders inside Explorer:
Click the Archive Folders icon in the Start Menu.
Choose the Like regular folders, which I can browse directly option, and click OK.
Click OK when you are notified that the change has been made.
Close all running Explorer windows for the changes to take effect. You may need to log off and log back on.
From now on, when you open archives in Explorer, you will be able to browse directly inside them as if they were real file system folders.