I think WinRAR stores the data in the system TEMP folder anyway, then copies it to the destination drive, so making the destination a different drive would only affect that copy step. I can't remember, it's been a few months since I used WinRAR instead of 7-Zip. That might still be significant, but wouldn't affect the lag of the unpacking process.
At the very least, even without a multi-threaded application, the system would respond better with dual-core since one core would be free to do other things while the other was busy with the extraction.
I just upgraded from an XP 2800+ though, and I don't recall all that much lag on that system when using WinRAR even on extractions where the destination file was a couple of gigs, made up of 2 to 10 parts.