Try using WinRAR, perhaps? We attempted to make sure the zip was compatible with as many programs as possible, and I don't think it should have any particular problems.
(Note to self: consider some kind of auto-installer. Hm.)
It's pretty easy to get simple auto-installers made - most programs including WinRar and WinZip both have their own self-extracting zip mode, so that a third party archive program isn't even necessary. There's also stuff like NSIS which make very professional installers pretty easily without complex licenses (being open source is a neat plus too)
http://nsis.sourceforge.net/Screenshots As you can see, some fairly high profile software uses NSIS (it was first made by the people who make WinAmp)