When you open a file from an archive using 7-Zip, the uncompressed (unzipped) file is stored in a temporary folder on your hard drive.

If you close the file before closing 7-Zip, 7-Zip automatically deletes the temporary folder and the uncompressed file.

However, if you close 7-Zip before closing the file, then the temporary folder and the file do not get automatically deleted. They remain on your hard drive. Even if the file was originally password-protected within the archive, the file can then be opened from the temporary folder, without needing to enter the password. Therefore, if you are using password protection for data security purposes, remember to always close the file before closing 7-Zip.

The location of the temporary folder likely varies depending on one's operating system. On a computer running Win7, the temporary folders are created here:
    C:\Users\[User Name]\AppData\Local\Temp\

The folder names begin with "7z" and end in ".tmp".

When using password protection for data security, it is advisable to choose the "AES-256" encryption method, rather than the "ZipCrypto" method, as the latter can more easily be cracked. However, not all archive programs support AES-256.

For stronger data security, consider TrueCrypt. This page explains how to use it.

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