The operation you requested requires the use of a temporary folder for the storage of intermediate files. WinZip® was unable to identify or create a temporary folder using standard Windows techniques, so it is unable to complete the operation.
To locate a temporary folder, WinZip searches for a folder specified by either the TMP or TEMP environment variable. If a folder is not found, WinZip then looks for a TEMP subfolder of the Windows folder; if the TEMP subfolder does not exist, WinZip attempts to create it. You will see this message only if all of these attempts fail.
Additional information may be available from the WinZip web site at http://www.winzip.com/tempfldr.htm.