how to import exported favorites


I regularly export/backup my favorites. The inevitable has just happened, hard disk failure.
Now I have my favorites backup, but I'm having trouble importing my favorites: basically, how do I import my favorites again?

I always export like this:

Now, when I go to import I don't see a SmartFTP xml zip option:

I tried simply extracting the zip in the favorites directory, but 7zip (latest version 64bit) tells me the compression method is unsupported:

Please help.

I'm using a clean install of Windows and SmartFTP (just finished reinstalling):
+- System -----------------------------
Microsoft Windows 7 Ultimate Edition
(Build 7600)

CPU Speed : 3733 MHz
Total Memory : 4093 MB
Free Memory : 1552 MB

+- SmartFTP ---------------------------
Version : 4.0.1166.0
Time Stamp : 2011-02-09 23:39:21
Platform : x64
Id : 400048035
Maintenance : 2011-05-01
Days in use : 0

+- Language ---------------------------

+- Internet Explorer ------------------
Version : 9.0.8080.16413

+- Winsock ----------------------------
Winsock : 2.2

1. Close SmartFTP
2. Rename the %appdata%\SmartFTP\Client 2.0\Favorites folder to Favorites.old
3. Then extract the content of the backu zip file into the %appdata%\SmartFTP\Client 2.0\Favorites folder