When you upload the ZIP file to the server, are you placing it into the UPLOADS/<USERID> directory? The ZIP file has to be in the userid directory corresponding to the user who you are uploading as (the path is displayed on the upload page, in fact).
You cannot upload a ZIP file from a URL; it's going to upload either an image or process an html page for embedded photos.
Also, unzip the ZIP file into the userid directory; that should help.
Please do not PM me for support or sales questions. Thank you for your understanding.