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Well, see a couple problems.
Shell "%COMSPEC% /C C:\kix\pkzipc.exe -extract C:\foldera\isafile.zip "$files" $folder\$file"
You got double-quotes embedded in double quotes, so get rid of those, plus your using the "$files" variable, instead of the $file variable, so maybe it would work better like this:
Shell ' %COMSPEC% /C C:\kix\pkzipc.exe -extract C:\foldera\isafile.zip "$file" "$folder\$file" '
-Shawn
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