That could mean what it says and that the file you are trying to extract is damaged.
It may also be caused by the CIH virus.

I would suggest that you run an antivirus scan as soon as possible.

You can also go to
http://www.SARC.com
They have information on detecting and cleaning up the CIH space filler virus.
This site is run by Symantec, the makers of Norton Antivirus.