Are you still affected by this bug? Have you tried to upgrade to a more
modern version of Ubuntu? Starting from Karmic, p7zip is in a new
version 9.04. With this I don't have problems compressing and
decompressing large files and folders.
I am going to set the status as incomplete. Feel free to reopen it if
you still suffer from this bug.
** Changed in: p7zip (Ubuntu)
Status: New => Incomplete
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File-roller extract result is corrupted.
https://bugs.launchpad.net/bugs/294764
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