Ok, I tried extracting a zip archive while monitoring the Temp folder mentioned above, but I didn't see any temp file being created by Windows on that specific folder. I don't think that folder is used by Windows to extract files from a zip file...
EDIT: the temp folder mentioned above is used to compress files into a zip file, but not to extract. I'm going to take a guess and say that Windows doesn't use a temp folder to unzip/extract.