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The great thing I've found with Winrar is that if you put your pointer over a Rar file (or a zip file for that matter) and right-click, you get an option to "extract here" or "extract to...", both of which options I use all the time. Really convenient. Use "extract here" if you think the rar or zip file contains its own folder, or "extract to..." if you aren't sure. I haven't found any restriction with the free version, either.