Can't Upload Zip files

When I attempt to upload a zip file - any size, e.g. 1.6mb - using the Upload Manager, it fails with the following error:

Warning
07/07/14 03:23:38 zip_read() expects parameter 1 to be resource, integer given
C:\inetpub mpp\htdocs\PHPAlbum\setup.php (Line:1091)

I have checked the FTP user has full access to the cache and destination folder (no errors on ftp server either).

I'm not sure what else to look at? I have no PHP knowledge so trying to understand the zip function in setup.php is doing my head in.

I'm using the latest version (0.4.1.14), with Apache 2.2.4 webserver and PHP 5.2.2 on Vista Ultimate.

Many thanks in advance

Cheers