Windows 7: Administrator Permissions Compressed Folders

Symptoms:

Send To Compressed Folder: Access is Denied

Create new Compressed Folder: Allowed
-Permissons for Created Compressed Folder: original permissions
Full Control (Domain Admins, Computer Admins, Power Users, Users, EVERYONE)

Try:
Copy/Move Contents into Created Compressed Folder: Denied
-Permissions for Newly Created Compressed Folder: CHANGE!
"No groups or users have permission to access this object. However the owner of this object can assign permissions."

Edit permissions-back to original-for Created Compressed Folder:
Full Control (Domain Admins, Computer Admins, Power Users, Users, EVERYONE)
-Mysteriously, the contents that were denied from being Copy/Moved to the Compressed Folder, APPEAR SUDDENLY in the Created Compressed Folder.
-If you try to open the folder before changing the permissions back to original, you will get: Denied

On any Network Drive - Send To Compressed Folder: Allowed
On any Network Drive - Create new Compressed Folder: Allowed
On any Network Drive - Copy/Move files to Compressed Folder: Allowed

Attempts at Solution:

Take computer off domain: No
-Try Local Admin
-Create New Local Admin

System Administrator: No

C Drive Permissions - Full Control: No
Shell:sendTo Compressed ZIPPED Folder Permissions - Full Control: No
-Add Full Control to Default Users, Local Admin/Users, Domain in the Shell:sendTo

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NOTE: Recommending a 3rd Party Compression Application is not a solution.