Ok folks, now we have PCManFM 0.9.7 in Squeeze and antiX. It's an improvement over the old version and it's in ongoing development. I suggest that we read
========= SCRAPER REMOVED AN EMBEDDED LINK HERE ===========
url was:"http://blog.lxde.org/?p=737"
linktext was:"this blog post about it"
====================================
.

Whoever uses it to manage desktop icons must now replace pcmanfm -d for pcmanfm --desktop in ~/.icewm/startup and ~/.fluxbox/startup.

Also in menu > desktop > settings > icons pcmanfm, change pcmanfm --pref=3 for pcmanfm --desktop and also the icon path.

Me no Likey so far (sense of humor here)

Right click compress does nothing.

Secipolla says file-roller works for compress but I have no idea on how to enable it in new pcmanfm yet.

I finally got right click to open xarchive so it would open to extract zipped files though using open with though.

compressing files using terminal command in the directory of file

You would have to install it (file-roller) or install xarchiver (note the final 'r', antiX comes with xarchive). I don't know the difference between the two xarchive(r)s.
You set the default one under edit>preferences>advanced.
But I recommend that you get file-roller, it's very user-friendly (it will show up in the menu as 'Archive Manager'). Squeeze, the Xfce archive manager, can be used too. I didn't try it yet but I'm going to do so because I have Xfce already (basic) and maybe it integrates with Thunar.

Well, I pussyed out secipolla and I rolled back to 0.5.3 before you posted. I am on the A22 Laptop which is my testing AntiX Laptop. So I will try later your suggestions after updating pcmanfm to 0.9.7 again.

I have the old deb file 0.5.3 stable in downloads folder if no joy with suggestions. Not difficult to roll it back.

Edit: Upgraded Pcmanfm again to 0.9.7
installed file-roller
installed xarchiver

In preferences file roller was already there. Tried as a experiment using xarchiver in preferences. Got Compress error using that option. Went back and used file-roller instead.
Worked Ok. Extract here and Extract To also works with file-roller in prefernces so far.

Will stick with this I guess. If it gives me hissy fits. I will rooooooll back to 0.5.3 again.
Deleted/unchecked box for trash can in r/h tree. Felt to much like Thunar with it there showing. Lots of mb needed for file-roller install. No big deal for me. But just a heads up for other folks.

Downloaded that hosts zip to secipolla. will uncompress and look through it also. Happy trails and thanks a bunch bro. Rok

Xarchiver is the archive manager for LXDE. It seems as light as Xarchive but with extra options.