I zipped my old windows dir with 7 zip. It zipped the "Application Data" many time (hundreds) as shown here : C:\Windows.old\Application Data\Application Data\Application Data\Application Data\Application Data/Application Data ... Now I cannot unzip it as it runs out of disk space. How to solve this problem? Thanks.
If your system is running out of disk space, delete the old parent copy after extracting the next child copy. 7-zip has command-line functionality to help you automate this in a batch script if it makes things easier for you.
The system may not actually be running out of disk space, but the pathname contained inside the zip may be too long. I would also check My Computer to see how much space is left on your disk when you get these errors.