I don't understand.

Sounds to me like the malware is already loaded deep into the machine if it's looking through folders for an out of date zip DLL.

What's it going to do create zipped up copies of itself and disperse them to everyone on the network?

Again, I think the malware is already on the machine. And from it's known servers that it downloads additional components it can surely download some kind of zip code malware maker.

The folder that the application in question is in Program Files or something?