7zip is really nice. Right mouse and you'll have menu shortcuts to various functions. You can browse archives, view files without extracting, edit files and alter the archive. It's got great compression and error correction too.
The readme(old ) is in the archive, but installation is pretty easy. Just do extract files, and select the 1.051 mod folder. You can view the path from in game by clicking the show mod path button on the mods page.
I'll be in irc again today if anyone needs info in real time.