Problem with long path names?

I tried to unpack the PHP eclipse package to a folder named like the ZIP package (pdt-2.0.0GA_debugger-5.2.15.v20081217-all-in-one-win32). WinRAR stopped with an error message (something like "file name to long"). I was unable to delete the folder until I shortened the directory name. Extracting worked only with a short path name.

Did anybody experience something like this?

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Windows 7 x64 - Gigabyte EP-45-DS3 (Intel P45 chip set), 4GB RAM, ATI 4670