diff --git a/rse/plugins/org.eclipse.rse.services/META-INF/MANIFEST.MF b/rse/plugins/org.eclipse.rse.services/META-INF/MANIFEST.MF
index 91921e95740..89c567a55a4 100644
--- a/rse/plugins/org.eclipse.rse.services/META-INF/MANIFEST.MF
+++ b/rse/plugins/org.eclipse.rse.services/META-INF/MANIFEST.MF
@@ -2,7 +2,7 @@ Manifest-Version: 1.0
 Bundle-ManifestVersion: 2
 Bundle-Name: %pluginName
 Bundle-SymbolicName: org.eclipse.rse.services;singleton:=true
-Bundle-Version: 2.0.0.qualifier
+Bundle-Version: 2.0.1.qualifier
 Bundle-Activator: org.eclipse.rse.internal.services.Activator
 Bundle-Vendor: %providerName
 Bundle-Localization: plugin
diff --git a/rse/plugins/org.eclipse.rse.services/clientserver/org/eclipse/rse/services/clientserver/archiveutils/SystemZipHandler.java b/rse/plugins/org.eclipse.rse.services/clientserver/org/eclipse/rse/services/clientserver/archiveutils/SystemZipHandler.java
index 98853fd7b03..b8e60d9a5e6 100644
--- a/rse/plugins/org.eclipse.rse.services/clientserver/org/eclipse/rse/services/clientserver/archiveutils/SystemZipHandler.java
+++ b/rse/plugins/org.eclipse.rse.services/clientserver/org/eclipse/rse/services/clientserver/archiveutils/SystemZipHandler.java
@@ -13,6 +13,7 @@
  * 
  * Contributors:
  * {Name} (company) - description of contribution.
+ * Xuan Chen        (IBM)        - [192741] [Archives] Move a folder from within an Archive doesn't work if > 1 level deep
  *******************************************************************************/
 
 package org.eclipse.rse.services.clientserver.archiveutils;
@@ -712,7 +713,17 @@ public class SystemZipHandler implements ISystemArchiveHandler
 		File topFile = destination;
 		String topFilePath = topFile.getAbsolutePath().replace('\\', '/');				
 		//if (!dir.equals(topFile.getName()))
-		if (!topFilePath.endsWith(dir))    
+		String lastPortionOfDir = null;
+		int lastSlashIndex = dir.lastIndexOf('/');
+		if (-1 == lastSlashIndex)
+		{
+			lastPortionOfDir = dir;
+		}
+		else
+		{
+			lastPortionOfDir = dir.substring(lastSlashIndex + 1);
+		}
+		if (!topFilePath.endsWith(lastPortionOfDir))    
 		{
 		 rename(dir, topFile.getName());  
 		 dir = topFile.getName();